2002 or 2003

Transcription

2002 or 2003

ＮＥＤＯ−ＩＣ−０２−ＥＤ−０２
Infrastructure Improvement Project for
Rationalization of International Energy Use
(Feasibility Study on Energy Conservation in
Major Industries in ASEAN Countries)
March, 2003
New Energy and Industrial Technology
Development Organization (NEDO)
Entrusted to The Energy Conservation Center, Japan
Infrastructure Improvement Project for Rationalization of International Energy Use
(Feasibility Study on Energy Conservation in Major Industries in ASEAN Countries)
The Energy Conservation Center, Japan
March, 2003
Study purpose:
This survey is intended to carry out energy audits for typical factories and
business establishments involved in major industries jointly with experts the from
ASEAN side and thereby grasp an understanding of the actual state of energy
consumption by the factories concerned, with a view to providing appropriate
advice on their energy conservation measures and at the same time establishing
typical energy auditing methodology in those countries.
Preface
In recent years, proper actions for effective utilization and demand stabilization of
increasingly limited energy resources and against global warming problems have been
emphasized and necessity of sustainable economic development has been discussed in many
ways.
Japan as an advanced nation in terms of economy and technology is strongly demanded to
provide positive international cooperation for developing countries.
In order to contribute to well-balanced development of economy and environment in
developing countries, the actual status and issues on the energy use and environmental
protection measures in each of these countries should be fully surveyed. Preparation of an
appropriate and acceptable plan and support matching the conditions in each country would
be necessary.
Under such circumstances, the planned and established energy audits in major industries and
technical transfer for ASEAN countries seems very timely because these countries are
continuing remarkable development and will show a steep increase in energy consumption.
This project includes not only transfer of energy conservation technology but also transfer of
factory audit technology to allow autonomous energy conservation audit in these countries in
future, so this project will be very useful for these countries in terms of assisting in
independent development.
We hope that this project will contribute to energy conservation and environmental
protection in ASEAN countries and these counties will sustain economic development being
harmonized with environment, and expect that this project will be a bridge for technical
exchange and friendship between Japan and these countries.
March 2003
Summary
The ASEAN economies are continuing to grow at a brisk pace, and accordingly their energy
consumption is also anticipated to increase rapidly from now on. In this context, it will be
vital to use energy more efficiently, as well as to give due consideration to global warming.
This project has entered its third year, and the ASEAN Center for Energy (ACE), our
ASEAN counterpart, is engaged in increasingly full-fledged and substantial energy
conservation activities, thereby contributing to the spread of awareness of the need for
energy conservation among the people in ASEAN countries.
Especially, it is notable that the results of the project were summed up and the future action
policy was discussed intensely with Japanese experts.
In details, creation of a database, benchmark, guideline for energy management was started
in order to share the accomplishments of these 3 years within ASEAN countries. This theme
was discussed at the Inception Workshop, which was held just after the start of the project of
this fiscal year and at the Post Workshop after the close of the business on site.
Formation of a working group by a representative from each ASEAN country was resolved
at the workshop of end of February 2003, which means that a practical framework to back up
the database, benchmark and guideline was built.
Specific details of activities through this project for this year are as follows:
Nov. 25-26, 2002;
Participate in “Inception Workshop of The SOME-METI Project on PROMEEC - Buildings
and PROMEEC - Industries” (Singapore).
(1) Policies for energy conservation promotion for building & industry sections, and
energy management & typical energy conservation technologies
(2) Explanation and discussion of Action Plan for 2002FY project (building & main
industry sections)
(3) Determination of a rough schedule for the building and main industry survey
(4) Exchange of views on benchmarks for energy consumption in buildings
(5) Exchange of views of the future project development
Dec. 10-19, 2002;
Energy audit of the garment industry in Cambodia and iron & steel industry in Philippines
(first survey)
(1) Introduction of energy conservation of garment industry in Japan (Cambodia)
(2) Audit of 2 garment factories in Cambodia
(3) Preparation of audit of iron & steel industry in Philippines
Feb. 10-21, 2003;
Energy audit of the garment industry in Cambodia and iron & steel industry in Philippines
(second survey)
(1) Introduction of energy conservation of iron & steel industry in Japan (Philippines)
(2) Audit of 2 iron & steel factories in Philippines, explanation of results and discussion
(3) Audit of 2 garment factories in Cambodia, explanation of results, discussion and
additional audit
Feb. 28-Mar. 1, 2003;
Participate in “Workshop of The Working Group for Benchmarking and Audit Guideline
Development Projects, SOME-METI Work Program” (Yangon, Myanmar)
(1) Report of results and discussion of audit of building (Vietnam & Myanmar)
(2) Report of results and discussion of factory audit (garment industry in Cambodia and
iron & steel industry in Philippines)
(3) Introduction and discussion of development of a database, benchmark, and guideline
for building in Japan
(4) Case study of development of a database, benchmark, and guideline for building in
Vietnam & Myanmar
(5) Introduction and discussion of implementation and concept of the development of
bench mark in ASEAN
(6) Discussion of future policy and plan of PROMEEC Project (building & main
industries)
Considerable cooperation was provided from Cambodia and Philippines, which were
subjects of survey, this fiscal year.
At Cambodia, audit was carried out twice at M&V International Manufacturing Ltd. and
June Textiles Co., Ltd. (Cambodia) at Phnom Penh.
Cambodia is just at its start point of development, and electrification is limited to urban areas.
We had full support from the related organizations on selecting the 2 companies. Garment
industry is a representative industry of Cambodia, and many administration officials attended
the workshops and the first audit with enthusiasm, to absorb experience and information
from Japanese experts.
Philippines is on the way of further development, as for iron & steel industry, because of the
import of cheap slabs and billets and appreciation of scrap (raw material) caused by the
robust economy of China, the management of steel manufacturers by electric furnace is in a
difficult situation.
A large number of companies are suspending the operation of electric furnace, and the
furnace operating companies are diminished to only 5 companies in these days.
The Target Company could not be determined at the first audit. We visited Philippines Iron
& steel Manufacturers Association and 3 iron & steel manufacturers, and made a request to
make coordination for the second audit.
By the second audit, the slabs and billets price run up. 2 companies, almost at full-operation,
accepted our audit, and audit was carried out at an electric furnace factory of billet
production and factory of rolling only. A large number of engineers, more over the attendants
from the Ministry of Energy, participated the workshop to acquire Japan’s energy
conservation experience and knowledge.
However, we could have fruitful results for both parties thanks to the cooperation of
administration officials and ACE persons. We believe that the proposed measures for energy
conservation are significant points to improve the current situation concerned.
We would very much like to see these proposals put into practice at the earliest opportunity,
and the reference materials and actual experiences are utilized effectively, disseminated in
ASEAN countries and become the base of future activities, thereby enabling us to contribute
to the conservation of energy and presentation of the environment in the ASEAN countries.
Finally, we would like to thank all those at ACE along with the organizations and factories
involved in each country for their cooperation.
Contents
Preface
Summary
I.
Garment Industry ............................................................................................................ I-1
1. Project Summary............................................................................................................. I-1
1.1 Subjects of Study and Organizations Involved ....................................................... I-1
1.2 Political and Economic Conditions in Cambodia ................................................... I-2
1.3 Energy Status in Cambodia..................................................................................... I-5
1.4 Overview of Garment Industry in Cambodia.......................................................... I-7
2. Overview of Garment Factories Audited ........................................................................ I-9
2.1 Overview of Garment Factory 1 – M&V International Manufacturing Ltd. .......... I-9
2.2 Facilities and Capacities of M&V – MV3 Factory ................................................I-11
2.3 Overview of Garment Factory 2 – June Textiles Co., Ltd. ................................... I-13
2.4 Facilities and Capacities of June Textiles Co., Ltd. .............................................. I-14
3. Audit Plan ..................................................................................................................... I-16
3.1 Audit Proceeding .................................................................................................. I-16
3.2 Selection of Equipment to be Audited and Checking Response to
Questionnaire ........................................................................................................ I-17
3.3 Audit Schedule...................................................................................................... I-17
4. Equipment Audited ....................................................................................................... I-19
4.1 Audit Survey of M&V International Manufacturing Ltd...................................... I-19
4.2 Audit Survey of June Textiles Co., Ltd................................................................. I-20
5. Energy Conservation Survey and Measurement Results .............................................. I-23
5.1 Survey and Measurement Results of M&V International Manufacturing Ltd. .... I-23
5.2 Survey and Measurement Results of June Textiles Co., Ltd. ............................... I-25
6. Recommendation for Energy Conservation and Expected Effects ............................... I-27
6.1 Recommendation and Expected Effects for M&V International
Manufacturing Ltd. ............................................................................................... I-27
6.2 Recommendation and Expected Effects for June Textiles Co., Ltd...................... I-30
6.3 Summary of Energy Conservation Effects............................................................ I-36
7. Guideline for Promotion of Energy Conservation ........................................................ I-37
7.1 Overview of Processes in the Garment Industry................................................... I-37
i
7.2 Grasping the Actual Status of Energy Consumption ............................................ I-37
7.3 Extraction of Problems with Energy Conservation Check List ............................ I-38
7.4 Energy Conservation Approaches......................................................................... I-40
List of Attachments
Attachment I-1: COUNTRY REPORT ON ECONOMIC AND ENERGY
SITUATION IN CAMBODIA
Attachment I-2: Department of Garment Industry energy presentation slide list
Attachment I-3: Department of Garment Industry energy presentation slide
[The Energy Conservation Technology Realized in Japanese Garment
Industry]
Attachment I-4: Request for selection of factory to be surveyed to ACE
Attachment I-5: Questionnaire to M&V International Manufacturing Ltd. and
Response
Attachment I-6: Questionnaire to June Textiles Co., Ltd. and Response
SITUATION IN CAMBODIA by ACE
II.
Iron and Steel Industry ................................................................................................. II-1
1. Project Summary............................................................................................................ II-1
1.1 Subjects of Study and Organizations Involved ...................................................... II-1
1.2 Political and Economic Conditions of Philippines ................................................ II-3
1.3 Energy Status in Philippines .................................................................................. II-7
1.4 Iron and Steel Industry in Philippines.................................................................. II-12
2. Overview of Factories with Electrical Arc Furnace and Rolling Mill Audited ........... II-16
2.1 Overview of Company A (Factory with EAF) .................................................... II-16
2.2 Equipment and Capacity of Company A ............................................................. II-17
2.3 Overview of Company B (Factory with Rolling Mill) ........................................ II-20
2.4 Equipment and Capacity of Company B ............................................................. II-20
3. Audit Plan .................................................................................................................... II-23
3.1 Audit Proceeding ................................................................................................. II-23
3.2 Selection of Equipment to be Audited and Checking the Response to
the Questionnaire ................................................................................................. II-24
3.3 Audit Schedule..................................................................................................... II-24
4. Equipment Audited ...................................................................................................... II-26
4.1 Audit and Survey in Company A......................................................................... II-26
ii
4.2 Audit and Survey in Company B ......................................................................... II-30
5. Results of Survey and Measurement on Energy Conservation .................................... II-33
5.1 Results of Survey and Measurement in Company A ........................................... II-33
5.2 Results of Survey and Measurement in Company B ........................................... II-35
6. Recommendation for Energy Conservation and Expected Effects .............................. II-37
6.1 Recommendation and Expected Effects in Company A ...................................... II-37
6.2 Recommendation and Expected Effects in Company B ...................................... II-46
6.3 Summary of Energy Savings ............................................................................... II-53
7. Guideline for Promotion of Energy Conservation and Audit Manual ......................... II-54
7.1 Manufacturing Process Overview........................................................................ II-54
7.2 Grasping the Actual Status of Energy Consumption ........................................... II-73
7.3 Extraction of Problems by Energy Conservation Check List .............................. II-74
7.4 Energy Conservation Approaches........................................................................ II-76
List of Attachments
Attachment I-1: Philippines (COUNTRY REPORT ON ECONOMIC AND ENERGY
SITUATION)
Attachment I-2: Department of Iron and Steel Industry energy presentation slide list
Attachment I-3: Department of Iron and Steel Industry energy presentation slide
[The Energy Conservation Technology Realized in Japanese Steel
Industry]
Attachment I-4: Request for selection of factory to be surveyed to ACE
Attachment I-5: Questionnaire to Steel Industry
(Response not entered because of the confidentiality protection
agreement)
Attachment I-6: Data and Information on Philippines prepared by ACE
iii
I.
Garment Industry
Participants for the workshop, audit and survey of energy conservation in major
industries of ASEAN countries
(Staffs from MIME, ACE and ECCJ)
At the entrance of MIME, Phnom Penh, Cambodia, (Dec. 9, 2002)
I.
Garment Industry
1.
Project Summary
Aiming at contributing to energy conservation, environmental protection, and persistent
economic development in ASEAN countries showing remarkable economic growths,
this project was established as a part of the Infrastructure Improvement for
Rationalization of International Energy Use.
With ACE (ASEAN Center for Energy) as a core organization, this project attempts to
promote energy conservation relating to major industries under cooperation of ASEAN
countries. As the country and industry to be surveyed in this fiscal year, Cambodia and
its garment industry were selected. Thereafter, an audit plan was created based on
discussions with persons in charge in this country. In four days of December 9 through
13, 2002 and February 17 through 21, 2003, audits attended by persons in charge from
MIME (the Ministry of Industry, Mines and Energy) were implemented at the sites of
two companies in the garment industry.
Reported below is the survey result including the political and economic status of this
country.
1.1
Subjects of Study and Organizations Involved
(1)
Country and companies surveyed
Country : The Kingdom of Cambodia
Companies : M&V International Manufacturing Ltd. and June Textiles Co. Ltd.
(2)
Organization
1) Cambodia
Ministry of Industry, Mines and Energy: MIME
Mr. Khlaut Randy
Under Secretary of State MIME
Dr. Sat Samy
Director of Energy Technique Dept.
Mr. Chan Socheat
Manager of Electric of Energy Technique
Mr. Lieng Vuthy
Deputy Head of Energy Efficiency and
Standard Office
Mr. Toch Sovanna
Deputy Head of Renewable Energy Office
Mr. Khlainia Amradararith
Technical Energy Dept
Mr. Ouk Theary
Mr. Nong Chhavyvann
Mr. Yem Chandararith
Dept. of Energy Development
Mr. Ly Chamroeurn
Mr. Heang Bora
Staff of Energy Efficiency and Standard
Office
I-1
Mr. Choun Thea
2)
3)
4)
5)
1.2
Staff of Energy Efficiency and Standard
Office
Mr. Hing Kunthap
Consultant, Energy & Environment
Advisor of Dr. SAT SAMY
Mr. Soeung Vandoeun
Mr. So Veasna
Mr. Chhay Khan
Mr. Chhim Thearith
Electrical Engineer, Technical Energy Dept.
Mr. Thach Sovannreasey
Dept. of Energy Development
Mr. Chum Sopha
Mr. Anderson WILLIAMSON (From Australia: Sustainable Energy
Development Authority (SEDA))
M&V International Manufacturing Ltd.
Mr. WENY Wei
Administration Dept. Officer for all M&V
Mr. SU Chin Pha
Manager of Energy Sect.
June Textiles Co., Ltd.
Mr. William ONG
General Manager
Mr. YI Sokhom
Shipping Manager
ACE (ASEAN Center for Energy):
Mr. Christopher ZAMORA
Hiroshi Shibuya
Department Manager of the International
Engineering Department
Ichiro Matsuura
Technical expert of the International
Hideyuki Tanaka
Technical expert of the International
Political and Economic Conditions in Cambodia
(1)
Political and economic conditions in Cambodia
1) National indicators
Country name : The Kingdom of Cambodia
Area
: 181,000 km2 (less than about the half area of Japan)
Population
: 12.2 million (as of 2000)
Capital
: Phnom Penh
Language
: Cambodian (Official language)
Religions
: Buddhism (Hinayana)
I-2
2) Basic economic indicators
Gross domestic production (GDP): Approx. 3.09 billion US$ (source:
Ministry of Economy and Finance; 2000)
Trade values (source: data for 2000 from National Bank)
(1) Exports
: 1,050 million US$ (of which 110 million
US$ represents re-export)
(2) Imports
: 1,430 million US$
(3) Trade balance : 280 million US$
Major items in trade
(1) Exports : Garment products, timber, rubber, fish and shell,
agricultural products (soybean, corn)
(2) Imports : Petroleum products, tobacco, gold, construction materials,
automobiles, electrical products
Currency and exchange rate: Riels (1 US$ = 3,880 riels as of 2000)
3) Political system
Form of government : Constitutional monarchy
Head of state
: His Majesty King Norodom Sihanouk (Enthroned
on Sep. 24, 1993)
National assembly : Bicameral system (National Assembly and Upper
House)
Major ministries
: Ministry of Foreign Affairs and International
Cooperation, Ministry of National Defense,
Ministry of Interior and National Security, Ministry
of Economy and Finance, Ministry of Information,
Ministry of Public Works and Transport, Ministry
of Justice
4) Political situation
In November 1998 the People’s Party and the FU Party formed a coalition
government, and at the end of November a new administration was set up
with former Second Prime Minister Hun Sen, deputy leader of the People’s
Party, as the Prime Minister.
The coalition was heavily dominated by the People’s Part: members of the
party were awarded the most influential cabinet posts, including those of
Prime Minister, Chief Cabinet secretary, and all the main ministerial posts
relating to economic matters. As in the previous administration, the posts of
Minister of Defense and Minister of Interior are co-lateral ministers system
(2 ministers/ministry).
Meanwhile, each of the two governing parties provided chief secretaries
under the ministers at each government department.
I-3
The new administration from the start announced that its priority would be
the rehabilitation of the economy, thus naming itself “Economy
Administration”. Recognizing that the healthy economic development of the
country required an efficient administrative and fiscal system, the
government put forward and energetically promoted five main reform
policies, covering financial reform, the management of forest resources, the
reduction of the number of military personnel, administrative reform, and
social reform.
Subsequently, the government succeeded in raising its revenue through the
introduction of a value added tax of 10%. In addition, a decrease was
observed in the incidence of illegal logging. Thus, some of the initial targets
of the reform policy are being gradually realized. At the 6th meeting of
donor countries and organizations, held in Phnom Penh in June 2002, all the
donor nation governments and donor organizations recorded their favorable
impressions of the reforms undertaken by the Cambodian government and
prompted further efforts.
5) Economic trend
As a result of the political change in July 1997 as well as the economic
crisis that affected most of Asia, Cambodia suffered a severe deterioration
in its economy in 1998 (GDP growth slowed from 3.5% in 1996 to 1.5% in
1998) owing to declines in aid and investment from overseas, plus a fall off
in revenue from tourism. The newly established administration, in line with
its professed top priority on economic recovery, set to work seriously to
implement reform in the field of finance, the management of forest
resources, the reduction of the number of military personnel, administrative
reform, and social reform. At the same time, the Cambodian government
held regular monitoring sessions with representatives of donor countries to
keep them informed on the progress being made in the various reform plans.
In 1999, political stability returned to the country, and the economy also
followed a favorable trend, with GDP growth reaching 6.7%. The trend
remained strong with Cambodia recording GDP growth of 7.7% in 2000 and
6.3% in 2001 in spite of heavy damage from flooding.
6) Economic conditions
Table I-1-1 shows the major economic indicators in Cambodia.
I-4
Table I-1-1
Basic Economic Data
1997
1998
1999
2000
Population (million)
10.7
11.4
11.7
12.2
Real economic growth rate (%)
4.3
2.1
6.9
7.7
6.3
GDP (million US$)
3269
3011
3300
3351
3404
GDP per capita (US$)
281
247
264
261
259
424.6
412.9
480.3
546.7
46
45.8
42.8
38.2
36.9
Industries
15.2
16.1
17.1
20.8
21.9
Service industry
34.6
34
34.5
35.5
35.3
5.5
13.8
3.7
-4.6
-2.8
3845
3922
National budget (million US$)
GDP share by
sector (%)
Agriculture, forestry
and fisheries
Consumer price inflation rate (%)
Exchange rate (Riel/US$)
2001
2946
3744
3808
862 (327)
900 (296)
884 (172)
Imports (million US$)
1092
1073
1159
1524
1600
Trade balance (million US$)
-230
-173
-275
-263
-226
Exports (re-export) (million US$)
(2)
1261 (170) 1375 (176)
Major export/import items to/from Japan
1) Trade with Japan
(a) Exports to Japan (for 2000; unit: 1 million Japanese yen)
Imports from Japan : 4,146
Exports to Japan
: 5,573
(b) Major items in trade
Imports from Japan : Motorcycles, machines, etc.
Exports to Japan
: Footwear, fish (frozen), etc.
2) Direct investment from Japan
Lumber factories, galvanized steel sheet factories, automobile service
factories, etc.
1.3
Energy Status in Cambodia
The Ministry of Industry, Mines and Energy (MIME) is responsible for energy policies
in Cambodia. The results of its activities seem to appear gradually but the steps are
slow because of fund shortage, etc.
Most of energy resources in Cambodia is still firewood. Although deposits of
petroleum, natural gas, and coal have been expected, they are not confirmed yet. This
country has a lot of water but the expected waterpower is approximately 10,000 MW
because flat fields cover the most areas of the country and mountains are limited very
much.
I-5
For the energy demand, petroleum products occupy nearly 95%, which is all imported.
They are mainly used for traffic organizations and power generation plants (public and
private power generation plants). Gasoline, Kerosene, diesel oil, and fuel oil are used
approximately evenly.
The main constituent of industrial energy in Cambodia is of course electricity.
Presently, the rate of electrification is still lower than 20%. Electrification is limited to
Phnom Penh, major local cities, and surrounding areas. In most areas, people are
forced to live on without electricity. Therefore, the top priority for Cambodia is to
propagate electrification throughout the country.
According to the MIME’s plan and policy, EDC (Electricite du Cambodge, Electricity
of Combodia) under MIME is mainly promoting the nationwide electrification project.
Supported by new development and imports from adjacent countries, a project of
increasing electricity supply from approximately 150 MW at present to 750 MW in
2016 is being carried forward. Figure I-1-1 shows the master plan of power
generation/distribution by 2012 presented by MIME, Cambodia.
Figure I-1-1
Master Plan of Power Generation/Distribution in Cambodia
I-6
1.4
Overview of Garment Industry in Cambodia
To allow recognition of the Cambodia’s current status, information from documents
disclosed is given below.
1) Foreign relations of Cambodia
Regarding the relations with adjacent countries, the issue of the border that
should be determined remains. Skirmishes often occur near the border. These
incidents were caused by the fact that the border is not clear. Diplomatic
negotiations for settlement are being continued.
For China, Cambodia has declared that it would support the policy of “One
China” and the relationship between these two countries is closely tight.
However, it can be mentioned that the influence of the United States to
Cambodia is very large presently.
First, the United States exists as a country of supplying aid. Although Japan
supplies the largest and prominent aid to Cambodia, the amount of
implementation by the United States was 230 million dollars in 1999 alone, as
the runner-up. For the cumulative amount in 1992 to 1999, the United States was
also the runner-up slightly above France. Since the “political change in July
1997”, however, the United States has adopted a policy that aid for Cambodia is
limited to humane aid only and the United States does not use the central
government as a counterpart.
2) Economy in Cambodia and garment industry
In recent years, almost no price increase has been seen. The rate of Riel to US
dollar was 3800 to 3900 riel per dollar in 2000 and 3900 to 3950 riel in 2002. In
Cambodia, US dollars as well as the domestic currency are generally in use.
Direct investments from foreign countries were decreasing around 2000.
However, investments for tourism (including hotel construction) have drastically
increased. Investments to the garment sector do not show a significant drop and
the number of investments increases. Among investments by manufacturing
sector in 2000, the garment sector occupied approximately 60% and the energy
sector occupied approximately 16%. Presently, it is said the number of garment
companies is more than 200.
The influence of the United States to the garment industry is considerably great.
In 1999, exports of garment products occupied more than 80% of domestic
product exports from Cambodia and most of them were bound for the United
States. Although the garment industry in Cambodia is being led and developed
by investments from Chinese capitals in China and Hong Kong, it is considered
that import volume assignment authorized by the United States for Cambodia is
working fairly strongly as the motive for such investments. Further, the general
preferential trade system is applied to the garment products exported except for
I-7
very few items. On the other hand, the United States seems to be not so positive
for increase in volume assignment to Cambodia. Rather, the United States has
been reluctant to assigning an incremental bonus for the reason that the labor
conditions in Cambodia are poor. In other words, the trade policy of the United
States for Cambodia dominates development of the only one and largest export
industry in Cambodia and therefore it is related to deepening and growth of
industrialization for the entire national economy of Cambodia.
I-8
2.
Overview of Garment Factories Audited
To implement energy conservation audit and survey for the garment industry in
Cambodia, ECCJ asked ACE to select two garment factories in Phnom Penh and its
surrounding area. The responsible department in the Cambodian government selected
the two garment factories listed above according to the request from ACE.
The overview of two selected garment factories is as follows:
2.1
Overview of Garment Factory 1 – M&V International Manufacturing Ltd.
Company name
Factory name
Location
:
:
:
Products
Production volume
Employees
Working system
Organization
:
:
:
:
:
M&V International Manufacturing Ltd.
M&V No. 3 factory (MV3 factory)
No. 1623 Chac Angre Kraum, Phnom Penh, Cambodia
TEL: (855) 23-425 041
Knit wear (sweaters)
5,102,531 pieces (2001)
Approximately 3,000 (staff: 80 to 90)
8-hour work (7:00 to 11:00 and 12:30 to 16:30), 1-shift system
Figure I-2-1 shows the organization of the MV3 factory.
The headquarters is located in Macao (China). One factory is
located in Macao, and four factories in Cambodia.
General Manager
Washing
& Dyeing
Finishing
& packing
Linking
Energy Sect.
(Mr. Su Chin Pha)
Generator
Other
Departments.
Production Manager
Officer for all MV3
(Mr. Weny Wei)
Shop A, B, C, A&C
Boiler
Figure I-2-1
Maintenance
Organization of MV3 Factory
I-9
Operation overview :
This factory manufactures sweaters only under control of the
headquarters located in Macao. Our impression was that the
headquarters in Macao totally grasped production
organization/management and the role of MV3 was to
achieve the production duty according to instructions from
the headquarters.
This company was established in 1994 and operation in MV3
was started in 1997. The annual production volume is more
than 5 million pieces, all of which are exported to the United
States, EU, etc.
Since sweaters are produced before the season, the
production peak time is July and August and the time with
the smallest production is February every year. This pattern is
repeated. Upon the audit and survey in February, the factory
was almost deserted, the number of employees was smaller,
and the production volume was approximately 1/3 of that in
the peak time.
Energy sources are electricity and petroleum. The electricity
mainly relies on private power generation by a diesel power
generation but electricity for nighttime lighting, etc. is
purchased from EDC.
For boilers, river water and heavy oil are in use.
I-10
2.2
Facilities and Capacities of M&V – MV3 Factory
(1)
Facilities
Boilers : No. 1 boiler --- horizontal fire-tube boiler
4,200 kg/h
No. 2 boiler --- vertical through flow boiler
1,560 kg/h
783 kg/h
No. 4 boiler --- horizontal fire-tube boiler
6,000 kg/h
Electricity receiving equipment : 380 V (without transformer)
As the equipment in the garment factory, the dyeing unit, washing machine,
drying machine, sewing machine, knitting machine, flat-iron, lighting, air
conditioner, etc. are available.
(2)
Factory layout
Figure I-2-2 shows the layout of the M&V – MV3 factory.
(3)
Organization for operation
1-shift operation system with 3,000 to 4,000 workers (approximately 1,000
temporary workers assumed)
The working time is 7:00 to 11:00 and 12:30 to 16:30 (8 hours).
An organization of 16 members is responsible for energy equipment.
(4)
Energy consumption
Table I-2-1 lists energy consumption by energy source type in 2002. The data
was obtained from M&V.
Table I-2-1
Energy Consumption (2002)
(1US$ = 3,950 Riels)
Consumption
Energy source type Consumption
Unit price
amount (US$)
Heavy oil (kL/y)
927.6
US$0.25/L
231,900
Diesel oil (kL/y)
480
US$0.35/L
168,000
Electricity (MWh/y)
214
600 Riel/kWh = US$0.152/kWh
32,545
Total
432,455
I-11
Generators
&
Boilers
Steam
3F: Knitting & Linking
2F: Knitting & Check
1F: Warehouse
Water
Dyeing &
Washing
Repair
(Shop A)
Packing
&
Shipping
(Shop B)
QA &
Packing
Ironing,
Wash
&
Dry
(Shop C)
Ironing
& Check
Warehouse
Office
Gate
Figure I-2-2
M&V International Manufacturing Ltd. – MV3 Factory Layout
I-12
2.3
Overview of Garment Factory 2 – June Textiles Co., Ltd.
Company name
: GIMMILL Industrial (Pte) Ltd. (RAMATEX/GIMMILL
Group)
June Textiles Co., Ltd. (Cambodia)
Factory name
: June Textiles Co., Ltd. (Cambodia)
Location
: Russian Blvd., Borei 100 Khnong, Sangkat Tek Thla, Khan
Russei Keo, Phnom Penh
Tel: 023-883-338
Products
: Casual wear (main product: T-shirts)
Production volume : 1.17 million dozens (2001)
Employees
: 4,393 (as of November 30, 2002) (30 skilled workers included)
Working system
: 7.5-hour system with 2 shifts
(6:15 to 14:15 (7.5 hours), 14:15 to 22:15 (7.5 hours))
Organization
: Figure I-2-3 shows the organization of June Textiles Co., Ltd.
(Cambodia). The headquarters is located in Singapore.
Managing Director
General Manager
(Mr. William Ong)
Shipping Manager
(Mr. Yi Sockom)
Production
Planning
Main Store
New Factory
Sewing Dept.
Others:
(Administration
IT
Security
Clinic
Book keeping & Secretarial
assistance)
Cutting Dept.
Old Factory
Sewing Dept.
Figure I-2-3
Mechanic &
Maintenance
Dept.
(Energy Group)
Sample
Dept.
Follow
up Dept.
Factory Organization of June Textiles Co., Ltd.
I-13
QC Dept.
Operation overview : This factory manufactures casual products including T-shirts
mainly under control of the headquarters located in Singapore.
This company was established in 1992 and operation was
started in 1994. In 1997, a new building was constructed
beside the existing building. Presently, the annual production
volume is 1.17 million dozens (in 2001). All of the products
are exported to the United States and EU.
Energy sources are electricity and petroleum products.
Electricity from the diesel power generator in IPP
(Independent Power Producer) installed in its own factory has
been purchased but electricity has also been purchased since
2011 from EDC (Electricite du Cambodge). In the time zone
of 14:15 to 22:15, electricity from IPP is used. In other time
zones, electricity from EDC is used.
For boilers, service water and diesel oil are in use.
2.4
Facilities and Capacities of June Textiles Co., Ltd.
(1)
Facilities
Boilers : No. 1 boiler --- vertical through flow boiler
783 kg/h
500 kg/h
300 kg/h
No. 4 boiler --- vertical through flow boiler (second-hand equipment
being installed)
Electricity receiving equipment : 22 kV (a transformer (22 kV/400 to 230 V,
1500 kVA) provided)
Air compressors:
No. 1 air compressor --- 12.95m3/min×85.9 kW + Reservoir tank 1 m3
No. 2 air compressor --- 37 kW + Reservoir tank 1 m3 (also used for
No. 3 air compressor)
No. 3 air compressor --- 37 kW
As equipment in the garment factory, the cutting machine, sewing machine, flatiron, air conditioners, etc. are available.
(2)
Factory layout
Figure I-2-4 shows the factory layout of June Textiles Co., Ltd.
(3)
Organization for operation
4,393 workers with 2 shifts
The operating time is 7.5 hours in 6:15 to 14:15 and 7.5 hours in 14:15 to 22:15
(totally 15 hours).
I-14
(4)
Energy consumption
Table I-2-2 lists energy consumption by energy source type in 2002. The data
was obtained from June Textiles.
Table I-2-2
Energy Consumption (December 2001 to November 2002)
(1US$ = 3,950 Riels)
Consumption
Energy source type Consumption
Unit price
amount
Electricity from IPP
1,676
205,168
(MWh/y)
Electricity from EDC
2,170
265,165
(MWh/y)
Diesel oil (kL/y)
198
US$0.35/L
67,747
538,080
Total
Restaurant
2F contact bridge
New factory (4-story building)
4F: Cutting and warehouse
3F: Sewing and air compressor
2F: Flat-iron and warehouse
1F: Warehouse and shipping
Boilers
Old factory (3-story
building)
3F: Sewing
2F: Sewing
1F: Warehouse and
maintenance
shop
Wellhole
IPP power
generator
4F: Office
Maintenance
shop
Gate
Figure I-2-4
Factory Organization of June Textiles Co., Ltd.
I-15
3.
Audit Plan
The purpose of audit and survey by visiting Cambodia was to grasp the production
processes, energy consumption, and actual status of utilizing exhaust heat in two
selected garment factories, propose an improvement plan for promotion of energy
conservation, and attempt to improve and propagate energy conservation consciousness
for enlightenment through convening a workshop on the site to introduce the energy
conservation technologies and activities in Japan. Further, it was intended to support the
persons responsible for promotion of energy conservation on the ASEAN side so that
they would be able to establish the standard energy conservation audit method, by
taking into account the actual status of similar industries, energy conservation audit
technical level, etc. in ASEAN countries after energy conservation audit was
implemented.
Upon implementation, survey was carried out two times.
In the first field survey, the first workshop was convened. Efforts were made so that
points of energy audit in the garment industry and energy conservation technologies
realized in the Japanese garment industry would be introduced and understood.
For audit, it had been planned that the local audit group arranged by ACE would
perform measurement and implement audit under supervision of the delegated experts
with regard to check with the questionnaire sent in advance and survey in the actual
factories. However, factory selection was delayed as described above, we were obliged
to conduct check with the questionnaire and audit survey concurrently.
In the second field survey, based on the energy conservation improvement plan revealed
as a result of the first audit, explanation was given to the person in charge in the
Ministry of Industry, Mines and Energy (MIME) of the Cambodian government and the
manager from these two companies. Further, field audit survey was performed again to
confirm the contents of the improvement plan.
3.1
Audit Proceeding
For 2 companies that accepted energy conservation audit survey, one-day visit was
made to each company for both the first and second field surveys.
In the first audit survey, MIME and ECCJ explained how this audit survey was
planned and its significance to the plant managers of both companies. Since the
response to the questionnaire had not been given, all members took a plant tour first.
Then, the members were divided into two teams. One team was to check the response
to the questionnaire and the other was to implement audit by visiting the field again.
The measuring instruments used by the auditing team were the radiation thermometer,
illuminometer, clamp type ammeter, and clamp type watt-meter.
In addition, the photo shoots were forbidden strictly by two companies, therefore there
are no pictures showing the factory situations.
I-16
3.2
Selection of Equipment to be Audited and Checking Response to
Questionnaire
Energy used in the garment factories is limited to:
Electricity (private power generation and purchased electricity):
Sewing machine, washing machine, drying machine, dyeing machine,
pump, fan/air conditioner operation, lighting, etc.
Steam : Flat-iron, water temperature control of the washing machine and dyeing
machine, etc.
Therefore, if a power generator was provided, it was determined that audit would
focus on the power generator’s operation and exhaust heat recovery status; boiler
operation, piping equipment, and steam utilization status; and the air compressor and
lighting equipment that would use more energy.
Although two companies already received the questionnaire from ECCJ when audit
was started, nothing was prepared as the response. Therefore, we decided to get each
answer by checking one by one.
The attached table shows the questionnaire and responses.
Both companies had not performed field measurement and daily data collection but
they had simply checked the monthly payment bills.
Actions against failures could not be taken and countermeasures would be late unless
meters are attached to the equipment and management with these meters is enabled.
Further, someone may notice a failure several months after it occurred.
3.3
Audit Schedule
Two factories where we conducted audit survey were located in Phnom Penh. We were
able to move around very easily because of MIME’s help.
We visited two factories twice each. For individual reasons of each factory, one-day
audit survey was performed for both first and second field surveys. In the M&V –
MV3 factory, it took time because two interpreters were necessary among English,
Cambodian, and Chinese.
The audit schedule is shown below.
First survey: Implemented in December 2002
December 9 (Mon.) Convention of a workshop on energy efficiency
and energy conservation (participated by MME,
ACE, and ECCJ)
December 10 (Tue.) Preparation and discussion on audit survey at
MIME
I-17
December 11 (Wed.) M&V MV3 factory visit
Introduction of participants, explanation of the
purpose for audit survey, plant tour, audit
implementation, and acquisition of the response to
the questionnaire
December 12 (Thu.) June Textiles Co., Ltd. Factory visit
Introduction of participants, explanation of the
purpose for audit survey, plant tour, audit
implementation, and acquisition of the response to
the questionnaire
December 13 (Fri)
Summary of audit survey and implementation of
the wrap-up meeting at MIME
Second survey: Implemented in February 2003
February 17 (Mon.) Explanation and discussion on the result of the
first audit survey (energy conservation
improvement plan) at MIME
February 18 (Tue.) June Textiles Co., Ltd. Factory visit
Explanation of the result of the first audit survey
(energy conservation improvement plan) and reimplementation of audit and information
acquisition
February 19 (Wed.) M&V MV3 factory visit
Explanation of the result of the first audit survey
(energy conservation improvement plan) and reimplementation of audit and information
acquisition
February 20 (Thu.) Summary of audit survey and correction of the
improvement plan at MIME and reporting to the
energy department manager of MIME
February 21 (Fri.)
Summary of audit survey at MIME and reporting
the energy conservation improvement plant to the
vice minister of MIME
I-18
4.
4.1
Equipment Audited
Audit Survey of M&V International Manufacturing Ltd.
(1)
Diesel power generator equipment specifications and operating method
1) Equipment capacities
No. 1 power generator : 500 kVA, 400 kW
–
JUBILEE GENERATING
SET, UK
JUBILEE GENERATING
SET, UK
2) Operating method
From AM7:30 to 11:30 and PM1:00 to 5:00, the No. 2 and 3 power
generators are run to support the factory load.
In the nighttime, electricity is purchased from EDC to support the factory
load.
On the day of audit. No. 1 generated 250 kW and No. 2 generated 230 kW.
Total electricity output (factory load) was approximately 480 kW.
(2)
Electricity receiving/transforming equipment
1) Equipment capacity
The 3-phase 400 V power is purchased from EDC.
2) Operating method
Mainly in the nighttime, electricity is purchased from EDC.
The time zone and the frame of purchased electricity are determined
according to the discussion with EDC. Electric energy purchased is
approximately 13,000 kWh/m.
(3)
Boiler equipment specifications and operating method
Boiler A
: Evaporation volume 4,200 kg/h × 10 kg/cm2: horizontal
fire tube boiler
LAI CHEN WORKS CO., LTD., TAIWAN
I-19
Boiler B
Boiler C
Boiler D
: Evaporation volume 3,450 LBS/h × 10 kg/cm2: vertical
through flow boiler
FULTON BOILER WORKS, INC., NY
: Evaporation volume 1,725 LBS/h × 10 kg/cm2: vertical
through flow boiler
: Evaporation volume 6,000 kg/h × 10 kg/cm2: horizontal
fire tube boiler
2) Operating method
Boiler D mainly supplies steam of 7 kg/cm2 to the dyeing, dryer, and ironing
processes.
(4)
Lighting equipment
Shop A
: Uses many local lights and ceiling
lighting with 36 lamps.
Shop B
lighting with 18 lamps. However, ceiling
lighting is turned off.
Shop C
lighting with 266 lamps.
Washing and dyeing : Ceiling (general) lighting
Shop A & B
lighting.
(general)
(general)
(general)
(general)
(general)
2) Operating method
Ceiling (general) lighting and local lights are turned off for the equipment
that has been shut down.
For the equipment in service, many local lights and ceiling (general)
lighting are used.
4.2
Audit Survey of June Textiles Co., Ltd.
(1)
Diesel power generator equipment specifications and operating method
No. 1 power generator : 350 kVA/280 kW
PERKINGS ENGINES LTD, UK
No. 2 power generator : 500 kVA/400 kW
PERKINGS ENGINES LTD, UK
I-20
2) Operating method
The power generators are operated by IPP, from which this company
purchases electricity.
From PM 2:00 to 10:00, electricity is purchased from these two power
generators for the factory load of approximately 700 kW.
(2)
Electricity receiving/transforming equipment specifications and operating
method
1) Equipment capacity
Electricity of 22 kV is received from EDC. The capacity of the main
transformer is 22 kV/400-230 V, 1500 kVA.
2) Operating method
Presently, electricity is purchased from EDC in a time zone of AM6:00 to
PM2:00. The time zone and the frame of electricity purchased are
determined according to the discussion with EDC.
(3)
Boiler equipment specifications and operating method
No. 1 boiler : Evaporation volume 1,725 LBS/h × 10 kg/cm2
FULTON BOILER WORKS INC, NY
No. 2 boiler : Evaporation volume 500 kg/h × 10 kg/cm2
MIURA BOILER CO. LTD, JAPAN
No. 3 boiler : Evaporation volume 300 kg/h × 10 kg/cm2
No. 4 boiler : Under installation
2) Operating method
Presently the No. 1 boiler mainly supplies steam to the ironing process at a
boiler outlet steam pressure of approximately 3.3 kg/cm2.
(4)
Air compressor equipment specifications and operating method
No. 1 air compressor
: 12.95 m3/min × 85.9 kW (INPUT)
BKOOM WADE, UK
: 37 kW OSP-37S5AR
HITACHI, JAPAN
: 37 kW OSP-37S5AR
HITACHI, JAPAN
No. 1 air compressor reservoir tank : 1 m3
No. 2 & 3 air compressor reservoir tank: 0.3 m3
I-21
2) Operating method
Since compressed air is
factories, air compressors
PM10:00 when the work
piping. Presently, the No.
factories.
(5)
required for sewing machine in new and old
are started at AM6:00 every day and stopped at
ends. Three air compressors are connected via
1 air compressor supplies compressed air to the
Lighting equipment specifications and operating method
1) New factory
The product warehouse is located on the first floor, the ironing, inspection,
and packing workshop on the second floor, the sewing workshop on the
third floor, and the material and cutting room on the fourth floor. Generally,
the positions of lighting apparatuses are high.
2) Old factory
The knit product warehouse is located on the first floor, and the sewing
workshops on the second and third floors. Generally, the positions of
lighting apparatuses are high.
I-22
5.
5.1
Energy Conservation Survey and Measurement Results
Survey and Measurement Results of M&V International Manufacturing Ltd.
(1)
Diesel power generators
Although the No. 2 and 3 power generators are in service, exhaust gas from the
diesel engine is not efficiently used.
Heat of exhaust gas from the No. 2 and 3 power generators should be recovered
to generate steam of 3 kg/cm2.
(2)
Boiler equipment
Some parts of the steam piping and valves in the dryer and ironing processes
were not covered with the heat insulator.
1) Dryer process : 25 A steam valve
25 A steam piping
2) Ironing process : 25 A steam valve
25 A steam piping
(3)
: 10 positions
: 3 m/position × 10 positions = 30 m
: 8 positions
: 2 m/position × 8 positions = 16 m
Lighting equipment
In Shop A, Shop C, and Shop A & B, ceiling (general) lighting does not
efficiently work. These lights should be turned off for energy conservation.
1) Result of illumination measurement through ceiling lighting ON/OFF in
Shop A (Figure I-5-1)
I-23
Boarding
Room
Checking &
Packing
810/750
Pressing
840/805
6m
2m
1m
1m
15 m
25 m
30 m
8m
15 m
Office
1m
Checking &
Packing
735/690
Pressing
850/830
6m
50 m
Figure I-5-1
{: Point of measuring illumination
Illumination through Ceiling Lighting ON/OFF in Shop A
(Example) 840/805
840: Illumination (Lx) provided when both ceiling
lighting and local lights are turned on
805: Illumination (Lx) provided when ceiling
lighting is turned off
Shop C (Figure I-5-2)
1120
880
846
First
Checking
Section
6m
280
Ironing
Section
Overlock Section
Buttoning Section
Labeling Section
Light
Section
16 m
3m
11 m
11 m
Measuring
Section
1180/1100
Second
Checking
Section
131/125
2m
19 m
30 m
4m
Packing
Section
830/820
5m
3m
50 m
Figure I-5-2
Illumination through Ceiling Lighting ON/OFF in Shop C
I-24
Shop A & B (Figure I-5-3)
630
601/570
Lighting
Section
(Inspection)
Sew
Label
6m
430/420
Mending
16 m
8m
17 m
17 m
228
490
Sort Size
Sew Label
648/640
50 m
Figure I-5-3
5.2
8m
Mending
6m
Illumination through Ceiling Lighting ON/OFF in Shop A & B
Survey and Measurement Results of June Textiles Co., Ltd.
(1)
Boiler equipment
1) Most of drain from the ironing process is emitted to the air.
Heat of the drain should be recovered and used as water supplied to the
boiler.
2) The steam piping between the boiler, steam header, and factory is not
insulated (surface temperature: 135°C). Figure I-5-4 shows the boiler piping
schematic diagram.
Heat insulation should be applied to the bare piping for energy conservation.
I-25
30 m
Steam to Factories
No. 1
Boiler
No. 2
Boiler
No. 3
Boiler
1725
LBS/h
500 kg/h
300 kg/h
Steam Header
Figure I-5-4
(2)
Bare Pipe,
Surface temperature
= 135°C
Boiler Piping Schematic Diagram
Air compressor equipment
On the day of audit, the No. 1 air compressor was running and repeating
loading/unloading.
A 2 m3 reservoir tank should be installed and controlling the number of air
compressors in service should be applied to three air compressors for energy
conservation.
(3)
Lighting equipment
The mounting position of the fluorescent lamp apparatus for the cutting machine
on the fourth floor in the new factory is high. By lowering the apparatus position
by approximately 50 cm, illumination on the working surface can be greatly
improved. Finally, the number of lighting apparatuses can be reduced and
significant energy conservation effects can be expected.
Similarly, the position of the fluorescent lamp apparatus for the sewing machine
on the second floor in the old factory should be lowered.
I-26
6.
6.1
Recommendation of Energy Conservation and Expected Effects
Recommendation and Expected Effects for M&V International Manufacturing
Ltd.
(1)
Heat recovery of exhaust gas from diesel engine
1) Exhaust gas heat recovery method
Heat exchangers should be newly installed on the exhaust gas ducts from
the No. 2 and 3 diesel engines for exhaust gas heat recovery. With energy
resulting from exhaust gas heat recovery, steam of 3 kg/cm2 is generated and
used along with existing boilers. Consequently, reduction of fuel used by
boilers is attempted.
Figure I-6-1 shows heat recovery method of the exhaust gas from diesel
engines.
Exhaust
3 kg/cm2 Steam
Power to Factory
No. 2 Generator
No. 2 Diesel Engine
720 kVA/576 kW
No. 3 Generator
No. 3 Diesel Engine
720 kVA/576 kW
Exhaust
Fuel
Water
Figure I-6-1
Fuel
Heat Recovery Method of the Exhaust Gas from Diesel Engines
2) Effects expected as a result of exhaust gas heat recovery
Operating : Power generation output : 250 kW × 2 sets (equipment
conditions
capacity = 576 kW/set)
Recovered steam pressure : 3 kg/cm2
Exhaust gas recovery heat : 45 Mcal/h at 250 kW (Data of the
value
same equivalent size in Japan)
Fuel heat generation
: 10,200 kcal/kg
Fuel specific gravity
: 0.85 kg/L
Fuel price (heavy oil)
: US$ 0.25/L in 2002
Boiler efficiency
: 85%
Steam enthalpy
: 664 kcal/kg
I-27
Supplied water
temperature
Running time
Steam recovery
Merit of heat recovery
: 60°C
: 2,296 h/y
: 45000 × 2/(664-60) = 149 kg/h
: (45000 × 2 × 2296 × 0.25)
/(10200 × 0.85 × 0.85)
=US$7010/y (= ∆28 kL/y /saved
fuel volume)
3) Equipment investment amount US$98600 (Japan-based investment amount)
a. Exhaust gas boiler
2 sets US$33000 × 2 =66000
b. Pump, piping material 2 sets US$3300 × 2 = 6600
c. Electrical components 1 set
US$ 10000
d. Installation cost
1 set
US$ 16000
Total
(2)
US$
98600
Heat insulation for steam piping in the dryer and ironing processes
1) Parts to which heat insulation is to be applied
a. Parts in the dryer process to which heat insulation has not been applied
25A steam valve : 10 parts
25A steam pipe : 3 m/part × 10 parts = 30 m
b. Parts in the ironing process to which heat insulation has not been applied
25A steam valve : 8 parts
25A steam pipe : 2 m/part × 8 parts = 16 m
Table I-6-1 shows the heat loss by radiation in the non-heat insulation
points.
Table I-6-1
Process
(Location)
Dryer
Ironing
Radiation in the Non-heat Insulation Points
Operation Present Situation
Period
(None-heat
(h/d)
insulation points)
10 h/d
25A Steam Valve
10 valves
25A Steam Pipe
30 m
10 h/d
25A Steam Valve
８ valves
25A Steam Pipe
16 m
Total
Heat Loss by Radiation
155 kcal/mh × 1 m × 10 × 10h = 15500 kcal/d
155 kcal/mh × 30 m × 10h = 46500 kcal/d
155 kcal/mh × 1 m × 8 × 10h = 12400 kcal/d
155 kcal/mh × 16 m × 10h = 24800 kcal/d
99200 kcal/d
I-28
2) Expected effect
The energy conservation effect is:
Radiation heat value × Heat insulation efficiency × Annual running days
× Fuel unit price/(Fuel calorific value × Boiler efficiency)
= 99200 kcal/d × 0.8 × 287d × US$0.25/(10200 kcal/kg × 0.85 kg/L × 0.85)
= US$772/y (= ∆3.1 kL/y saved fuel volume)
3) Equipment investment amount US$2,850 (Japan-based investment amount)
a. Heat insulation material
1 set
US$ 1600
b. Heat insulation application cost 1 set
US$ 1250
Total
(3)
US$ 2850
Turning off the ceiling (general) lighting in Shops A, C, and A & B
1) Effects expected from turning off the lighting in Shop A
Illumination provided after turning off the ceiling lighting is almost the
same as that provided when the ceiling lighting is turned on. In other words,
the ceiling (general) lighting does not work efficiently. Therefore, the
lighting should be OFF during the daytime for energy conservation.
Since the energy conservation effect is the total capacity of the ceiling
lighting apparatuses (4.3 kW (40 W × 3 pieces × 36 sets)):
Total capacity of lighting apparatuses × Annual running time ×
Operation rate × Electricity charge unit price
= 4.3 kW × 287d ×8 h/d × 0.8 × US$0.152/kWh
= US$1200/y
2) Effects expected from turning off the lighting in Shop C
Operation rate × Electricity charge unit price
= 9.6 kW × 287d × 8 h/d × 0.8 × US$0.152/kWh
= US$2680/y
3) Effects expected from turning off the lighting in Shop A & B
Operation rate x Electricity charge unit price
= 3.6 kW × 287d × 8 h/d × 0.8 × US$0.152/kWh
= US$1005/y
I-29
4) Equipment investment amount: 0 (not required)
6.2
Recommendation and Expected Effects for June Textiles Co., Ltd.
(1)
Drain recovery from the ironing process
1) Drain recovery method
Figure I-6-2 shows drain recovery method from the ironing process. Drain
should be utilized for boiler feed water and the heating.
Present Situation
Drain Recovery
Boiler feed water
To Water supply
Tank for Boiler
Inlet
Steam Pipe
Outlet
Drain
Drain
Tank
(Atmospheric Discharge)
P
Ironing
Figure I-6-2
Drain Recovery Pump
Drain Recovery Method from the Ironing Process
2) Effects expected from drain recovery
Drain from indirect heating (heat exchange type) in the ironing process is
used as water supplied to the boiler.
A drain recovery pump should be installed to recover the saturated water of
approximately 1.2 kg/cm2 at 120°C into the boiler water supply tank.
a. Operating
conditions:
Boiler capacity
: 500 kg/h
Boiler load rate
: 60%
Steam consumption rate in the ironing process :
Drain recovery rate
: 50%
Boiler efficiency
: 85%
Boiler water supply temperature : 30°C
Fuel unit price (diesel oil)
: US$0.35/L
I-30
20%
b. The fuel unit consumption (i.e. fuel volume required to generate steam
of 1 kg) is obtained.
If the water supply temperature is 30°C (at present),
(664-30) kcal/kg/10200 × 0.85 = 0.073 kg/kg
If the water supply temperature is 120°C (drain recovery),
(664-120) kcal/kg/10200 × 0.85 = 0.0627 kg/kg
c. The energy conservation effect is:
Drain recovery volume kg/y × Fuel unit consumption difference × Fuel
unit price/Fuel specific gravity
= 500 kg/h × 0.6 × 0.8 × 0.5 × 4800 h/y × (0.073-0.0627) kg/kg
× US$0.35/L/0.85kg/L
= US$2443/y (= ∆7 kL/y saved fuel volume)
3) Equipment investment amount US$27,000 (Japan-based investment
amount)
1 set
US$ 15000
a. Drain tank 5 m3
b. Pump and piping 1 set
US$ 5000
c. Installation cost
1 set
US$ 7000
Total
(2)
US$ 27000
Heat insulation for bare piping between the boiler, steam header, and
factory
1) Parts to which heat insulator is to be applied
All piping is bare (i.e. heat keeping not applied), as shown in Figure I-6-3,
Boiler piping schematic diagram.
As a measure, heat insulation (heat insulator thickness of 30 mm) should be
applied to the full length (60 m) of the bare piping.
2) Effects expected from heat insulation
(Heat insulation conditions) 40A piping × 60 m
Running condition
: 16 h/d × 300 d/y
Heat insulation effect : 80%
(Expected effect)
= 230 kcal/mh × 60 m × 16 h/d × 300 d/y × 0.8/(10200 kcal/L × 0.85 × 0.85)
× US$0.35/L = US$2516/y (= ∆7.2 kL/y saved fuel volume)
I-31
a. Heat insulation material
1 set US$ 1500
b. Heat insulation application cost 1 set US$ 2300
Total US$ 3800
Non heat insulation!
Steam to Factories
No. 1
Boiler
No. 2
Boiler
No. 3
Boiler
1725
LBS/h
500kg/h
300kg/h
Steam Header
Figure I-6-3
(3)
Bare Pipe,
Surface temperature
= 135°C
Boiler Piping Schematic Diagram
Energy conservation achieved by introducing of controlling the number of
air compressors in service
1) Introduction of controlling the number of air compressors in service
Figure I-6-4 shows the method of installing a new reservoir tank and
controlling the number by three air compressors.
2) Effects expected from introduction of controlling the number of air
compressors in service
Presently, the No. 1 air compressor is repeating loading/unloading in a cycle
of 5 seconds. The unloading state is the standby state of the air compressor
not delivering compressed air. Air is accumulated in the newly installed
reservoir tank. The status of air accumulation is indicated by the tank
pressure, with which the system controls air compressor ON/OFF. By
stopping the operation after the unloading operation, energy conservation
can be achieved.
I-32
Control Method for Number of Air
Compressors in service
(After Improvement)
Present Situation
Reservoir
Tank
Air Compressor
75 kW
Reservoir
tank
Air Compressor
1.0 m3
No. 1
No. 1
1.0 m3
0.3 m3
37 kW
No. 2
No. 2
No. 3
No. 3
2.0 m3
Compressed Air
to Factories
Compressed Air
to Factories
0.3 m3
New Reservoir
Tank
Pressure
Signal
37 kW
<Air Compressor Operating Condition
by Diagnosis Data>
No. 1 Air Compressor : Works
No. 2 & 3 Air Compressors : Stop
5sec
Figure I-6-4
（ON,OFF）
No. 1 air compressor’s
Current
Load 150A
Unload
100A
Operation
Signal
Number
Control
Equipment
5sec
Control Method for Numbers of Air Compressors in Service
(Expected effects)
Electricity for unloading =√3 × 0.4 × 100 × 0.85 = 58.9 kW
Annual electricity for unloading = 58.9 kW × 16 h/d × 300 d/y × 0.8 × 1/2
= 113088 kWh (air compressor load rate
assumed to be 0.8)
The energy conservation effect is:
113088 kWh/y × US$0.122/kWh = US$13797/y
I-33
3) Equipment investment amount US$23,500 (Japan-based investment
amount)
a. Unit for controlling the number of
1 set
US$ 12500
3
1 set
US$ 6000
b. Reservoir tank 2 m
c. Installation cost
1 set
US$ 5000
Total US$ 3800
(4)
Energy conservation achieved by changing the position of the lighting
apparatus
1) Places requiring apparatus position change (improvement)
Following two places are large and wide room, and there are many local
lamps. This method is applied to anywhere in the rooms.
a. Changing the position of the fluorescent lamp for the cutting machine
on the fourth floor in the new factory (Figure I-6-5)
Lowering of Fluorescent Lamps
Position
(After Improvement)
Present Situation
500
H=1800
H=1300
Working
Table
Working
Table
Lower 0.5 m the fluorescent lamps
position
Figure I-6-5
Changing the Position of the Fluorescent Lamp on the Fourth
Floor in the New Factory
b. Changing the position of the fluorescent lamp for the sewing machine
on the second floor in the old factory (Figure I-6-6)
I-34
Lowering of Fluorescent Lamps
Position
(After Improvement)
Present Situation
400
H=1700
H=1300
Working
Table
Working
Table
Lower 0.4 m the fluorescent lamps
position
Figure I-6-6 Changing the Position of the Fluorescent Lamp on the Second
Floor in the Old Factory
2) Expected effects
Illumination on the working table is closely related with the distance H
between the lighting apparatus and working surface. In other words, if H is
reduced to a half, illumination becomes 4 times larger.
By lowering the position of the lighting apparatus, illumination is greatly
improved. Consequently, the number of apparatuses can be reduced and
therefore energy conservation can be achieved.
a. Expected effects for the cutting machine on the fourth floor in the new
factory
a) Number of lighting apparatuses at present: 40 W × 2 pieces × 208
lamps
b) Number of lighting apparatuses required to obtain the same
illumination when the position of the apparatus is lowered:
208 lamps × (1300/1800)2 = 109 lamps
c) Number of apparatuses reduced : 208 – 109 = 99 lamps
d) Energy conservation
: 7.92 kW (40 W × 2 pieces ×
99 lamps)
e) The energy conservation effect is :
7.92 kW × 16 h/d × 300 d/y × 0.8 × US$0.122/kWh = US$3710/y
(lighting load rate assumed to be 0.8)
I-35
b. Expected effects for the sewing machine on the second floor in the old
factory
a) Number of lighting apparatuses at present: 40 W × 2 pieces × 128
lamps
b) Number of lighting apparatuses required to obtain the same
illumination when the position of the apparatus is lowered:
128 lamps × (1300/1700)2 = 75 lamps
c) Number of apparatuses reduced : 128 – 75 = 53 lamps
d) Energy conservation
: 4.24 kW (40 W × 2 pieces ×
53 lamps)
e) The energy conservation effect is :
4.24 kW × 16 h/d × 300 d/y × 0.8 × US$0.122/kWh = US$1986/y
(lighting load rate assumed to be 0.8)
a. Cost for changing the apparatus position on the fourth floor
US$ 3000
in the new factory
b. Cost for changing the apparatus position on the second floor
in the old factory
US$ 3000
Total
6.3
US$ 6000
Summary of Energy Conservation Effects
Table I-6-2 shows the summary of energy conservation effects
Table I-6-2
Summary of Energy Conservation Effects
Company name
Item
M&V International
Manufacturing Ltd.
June Textiles Co., Ltd.
US$/y
US$
Expected
Equipment
effect
investment amount
US$/y
US$
Expected
Equipment
effect
investment amount
1. Heat recovery from diesel
engine exhaust gas
7010
98600
–
–
2. Heat insulation for steam
piping
772
2850
2516
3800
3. Drain heat recovery in the
ironing process
–
–
2443
27000
4. Controlling the number of
–
–
13797
23500
4885
–
5696
6000
12667
101450
24452
60300
5. Making the lighting
equipment’s efficiency
higher
Total
I-36
7.
7.1
Guideline for Promotion of Energy Conservation
Overview of Processes in the Garment Industry
The manufacturing processes are shown in Figure I-7-1. Which process uses utilities
such as electricity, water, steam, compressed air, etc. how should be grasped first.
Original
cloth
Cutting
Putting on
buttons and
labels
Sewing
First
inspection
Ironing
Compressed air
Second
inspection
Packing
Shipping
Steam
Electricity
Figure I-7-1
Grasping the Actual Status of Energy Consumption
(1)
Data collection in advance
Data should be collected in advance and filled in Factory Energy Use Status
Table (i.e. enter the production volume and used quantities of electricity, fuel,
steam, water, and compressed air).
(2)
Prepare a graph showing the amount of energy used.
For example, a graph showing the power volume used in the factory is prepared
in Figure I-7-2.
(kWh)
2002
Electricity consumption
7.2
Manufacturing Processes in the Garment Industry
2003
Jan.
Feb. Mar. Apr. May. Jun.
Figure I-7-2
Jul.
Aug. Sep. Oct. Nov. Dec.
The Power Volume Used in the Factory (Example)
I-37
(3)
Prepare a graph showing the production volume and energy intensity in
the factory.
For example, a graph showing the sweater production volume and power
consumption is prepared in Figure I-7-3.
(kWh)
(Remarks)
Sweater production volume
power consumption
Power consumption (kWh)
/Sweater production volume
2003
Figure I-7-3
(4)
Sweater production volume
Jan.
Feb.
Mar.
The Sweater Production and Power Consumption (Example)
Enhancement of energy management
Measuring instrument should be installed for respective utilities so that periodic
measurement, data collection, and management of the energy volume used in the
factory will be possible.
1) Electricity
Installing a meter for electrical energy generated by
each diesel power generator
Installing a meter for electrical energy in each process
2) Steam
: Installing a meter for the fuel volume used for each
boiler
Installing a flow rate meter for water supply to each
boiler
3) Compressed air : Installing a flow rate meter for each process
4) Lighting
: Installing a meter for electrical energy in each process
7.3
:
Extraction of Problems with Energy Conservation Check List
When graphs of the energy consumption data collected, production volume, and
energy volume used and intensity are available, check should be made according to
the check list given below to extract problems in energy conservation.
I-38
1) Electricity management
a. How to determine the contracted electricity and the system of the
electricity charge should be understood.
b. The contracted electricity and maximum demand electricity as well as
the electricity volume used should be reduced.
c. Isn’t wasted electricity found in comparison between months and with
the previous year when the graph showing the used electricity volume is
checked?
d. Is electricity consumption being improved?
2) Energy Conservation Check Points for Major Equipment
a. Electricity receiving/transforming equipment
• Isn’t there any transformer that can be shut down in the nighttime or
on holidays?
• Is the power factor being improved?
b. Air compressor equipment
• Isn’t there leak from piping?
• What about ventilation? Isn’t the air compressor intake temperature
high?
• Can’t the delivery pressure of the air compressor be dropped?
• What is the air compressor’s capacity adjusting system?
• Is the air compressor shut down when it is not used?
• What operation is performed against variation of the used volume?
• Has introduction of controlling the number of air compressors in
service been studied?
c. Blower and pump
• Are they shut down when they are not necessary?
• Doesn’t the flow rate or pressure have a too large margin?
• Is the flow rate adjusted, and by what?
• Was changing the number of revolutions or impeller cutting studied?
• Was controlling the number of revolutions studied?
d. Boiler equipment
• Is the air-fuel ratio for combustion adequate?
• Is heat insulator applied to the boiler furnace wall?
• Is heat insulator applied to steam piping?
• Is drain recovered efficiently after the use in the process?
I-39
e. Lighting
• Is lighting turned off when or where it is not required?
• Is daylight used and is lighting turned off?
• Is spot lighting also used?
• Is illumination adequate and is it measured?
• Was adoption of high-efficiency lighting apparatuses studied?
f. Air-conditioning equipment
• Can’t the heat load generated from components and outer air load be
reduced?
• Can’t heat insulation for the building and daylight shielding be
improved?
• Is the set value for room temperature adequate?
• Can’t the air conditioner running time be reduced?
• Isn’t air conditioning run in unnecessary spaces?
• Is the filter cleaned periodically?
• Upon renewal, new installation, or expansion, was adoption of the
ice heat storage type studied?
7.4
Energy Conservation Approaches
After problems are extracted according to 7.3 Extraction of Problems with Energy
Conservation Check List, approaches for solving the problems are required.
Following are the energy conservation approaches for problem solution.
Energy conservation should be studied according to these approaches. The result of
studying energy conservation should be forwarded to the energy conservation actions
based on the considerations of the energy conservation effects and equipment
investment.
Examples of approaches:
Approach 1 : Reduction of Maximum Electricity with a Demand Controller
Approach 2 : Power Factor Improvement Method
Approach 3 : Energy Conservation Technique for Air Compressors
Approach 4 : Energy Conservation and Cost Reduction through Control of the
Number of Air Compressors in Service
Approach 5 : Control of the Number of Revolutions for Blowers and Pumps
Approach 6 : Making Efficiency Energy Supply Higher by Co-generation System
Approach 7 : Application of High-efficiency Lighting Apparatuses
I-40
Approach 1:
1.
Reduction of Maximum Electricity with a Demand Controller
Operation of Demand Controller
The demand contract is a contract system based on the maximum electricity.
Consumption once a large value occurs, this value is the contracted electricity for
coming one year. Reduction of the contracted electricity from 612 kW to 522 kW by
suppressing the maximum electricity is described below.
If it is estimated that the actual electricity used is likely to exceed the target electricity
of 522 kW, individual shutdown commands 1 to 3 are sequentially issued to shut down
non-important loads in the factory and suppress the value below the target electricity.
After 30 minutes, power-on is performed (sequentially by timers) automatically to
achieve demand control and operation in unmanned and automatic mode.
Individual shutdown command 1
Power company
Target electricity 522 kW
(set value)
Monitoring of the
maximum electricity
Electricity
used
30 minutes
Factory
Demand controller
I-41
2.
Schematic Diagram of Demand Controller
The factory receives electricity from the power company. This system monitors the
maximum electricity at the electricity receiving point as shown below and shuts down
the non-important loads in the factory with the shutdown signals from the load
shutdown control panel to suppress the peak electricity. By suppressing the maximum
electricity (peak), the contracted electricity can be maintained low and a significant
amount of electricity charge can be reduced.
Power company
Shutdown
Demand
command
Load shutdown control panel (newly installed)
controller
(newly installed)
2 signals
3 signals
3.
Hazard light
running
command 3
Individual
shutdown
command 1
Factory
2 signals
Individual
shutdown
Monitoring of
the maximum
electricity
Individual
shutdown
command 2
Detector
(newly
installed)
Exhauster
Control panel
(modified)
Exhauster 55 kW
No. 1 to 3 shorting
2.25 kW
No. 1 to 3 exhaust fans
(modified)
11 kW × 3 sets
Blower control panel
(modified)
Blower 55 kW
Screw conveyer
1.5 kW
57.25 kW
33 kW
56.5 kW
Investment Effect by the Demand Controller
If it is assumed that the present contracted electricity of 612 kW is suppressed to 522
kW by execution individual shutdown commands 1 and 2 in the table below, the amount
of introduction merit is 1.45 million yen annually.
Since a peak may occur any time in the present status (blind state), it is recommended to
introduce the demand controller.
Once the demand controller is introduced, the maximum electricity can be easily
managed and therefore it is easy to implement energy conservation measures.
Equipment to
be shut down
Saved
electricity
Individual shutdown
command 1
Exhauster
57.25 kW
Individual shutdown
command 2
Exhaust fan
33 kW
Individual shutdown
command 3
Blower
56.5 kW
Investment effect/year
Total investment
effect
57.25 kW × 1575 yen/kW × 0.85 × 12
= 919,721 yen
919,721 yen
33 kW × 1575 yen/kW × 0.85 × 12
= 530,145 yen
1,449,866 yen
56.5 kW × 1575 yen/kW × 0.85 × 12
= 907,762 yen
2,357,538 yen
If up to individual shutdown command 3 is implemented, the effect is approximately 2.3
million yen annually.
I-42
Approach 2:
1.
Power Factor Improvement Method
If the present maximum electricity is 210 kW and the power factor is 98%, the capacity
required for the capacitor for improvement to a power factor of 100% is as follows:
210 kW
Capacity required
for the capacitor
Capacity required for the capacitor
2.
Installation of the power factor improving capacitor
Power company
6600 V
Existing capacitor
Existing
30 kVA × 2 sets
37 kW
Newly installed 30 kVA
Low-voltage capacitor
Dust collecting
blower
I-43
Approach 3:
Energy Conservation Technique for Air Compressors
(1) Renewal to a new machine (high-efficiency air
compressor)
(4) Reduction of the delivered air pressure and
use-end pressure
<Expected effect> Energy conservation of 7 to 15% (per
air compressor)
<Expected effect> If a delivery gauge pressure of 0.69
MPa (7 kgf/cm2) is dropped to 0.59
MPa (6 kgf/cm2), energy conservation
is approximately 9%.
(2) Adoption of the system controlling the number
of air compressors in service
<Expected effect> Realization of the minimum necessary
(3) Improvement of installation (intake) condition
Measures for
reduction of
pressure losses
• Lowering the intake air temperature
• Reduction of the intake resistance
<Expected effect> Realization of operation with optimum
energy conservation
Improvement
measures
a. Periodic maintenance of
supplementary equipment (filters,
etc.)
b. Loop piping and review of pipe
diameter
a. Review of the intake port and
exhaust port
b. Optimization of the ventilation fan
capacity
(5) Repair of air leak from piping
<Expected effect> If 10 positions of 1 mm dia. hole
are repaired, energy conservation
corresponds to a 5.5 kW air
compressor.
I-44
Approach 4:
Energy Conservation and Cost Reduction through Control of the Number of Air Compressors in Service
Number of air compressors in service control system
Individual supply system (before improvement)
Controlling the number of
Shut down
Reciprocal
Shut down
Screw
Plant C
Plant C
Plant B
Compressed
air tank
Plant B
Plant E
Miscellaneous (common)
Screw
Plant E
Screw
Load/unload operation
prerequisite operation
Application
Air compressor
I-45
Time
Plant C only
Electricity consumption per day
kW/day
Load
operation
Unload
Shut down
Unload 20A
Reciprocal type
Unload
kW/day
Plant B only
Operation
Load
25A
Unload 20A
Screw type
Load
operation
Shut down
Time of load
operation and
shutdown
Unload
kW/day
Operation
Plant E only
Load
50A
Unload 41A
Screw type
kW/day
Operation (load: 51A-55A)
Load
operation
Time
kW/day
Shutdown
Unload
kW/day
Operation (load: 65A-??A)
Operation
Load
operation
Electricity
consumption
per day
Miscellaneou
kW/day
Load
operation
Time
kW/day
Shutdown
Screw type
Total
Annual electricity volume
(265 days)
day
Total
(265 days)
yen
Electricity charge
(@18 yen/kWh)
Electricity charge
(@18 yen/kWh)
Cost reduction effect
1,467,300 yen/y
day
yen
Approach 5:
Revolution Control for Blowers and Pumps
If the intake air flow rate is Q m3/min, the pressure is H mmAq, and the efficiency is η,
the required electricity P kW for the blower is:
P = QH/6120η.
If the number of revolutions is N rpm and the constant is k, the relationship between the
number of revolutions and power is as follows:
Q = k1N, H = k2N2
P = k3N3
Pressure (HmmAq)
The outlet damper is
In the figure at right, if the outlet damper
narrowed down.
is narrowed down to reduce the air flow
rate of the blower that is running at the
number of revolutions N1 and air flow
rate Q1 to Q2, the resistance curve of
piping changes from OR1 to OR2, power
changes from rectangle OH1R1Q1 to
OH2R2Q2. Power does not decrease very
much when the air flow rate is reduced
Flow rate Q (m3/minute)
by narrowing down the damper.
In contrast, N1 is reduced to N2 by controlling the number of revolutions, power reduces
from the area of rectangle OH1R1Q1 to the area of OH3R2Q2.
As you see, controlling the number of revolutions is more advantageous that controlling
the outlet damper in energy conservation.
Generally, an inverter unit (VVVF) is adopted for controlling the number of revolutions.
I-46
2.
3.
4.
5.
6.
High-efficiency Power Generation and Highefficiency Exhaust Heat Recovery
Adoption of a diesel engine enabling high-efficiency
shaft power.
Stable and high-efficiency exhaust heat utilization
through operation of collaborating lines.
Easy Fuel Supply
Adoption of a diesel engine enabling each fuel supply (A
heavy oil)
Low-pollution Diesel Pack
Low noise by adopting the sound-proof cubicle [75
dB(A)].
Low NOX in exhaust gas by the (optional) denitration
unit.
Compact unit
Adoption of a diesel engine (1500/1800 rpm).
High economy
Reduction of the energy cost with the inexpensive
electricity unit price and through high-efficiency exhaust
heat utilization.
Reduction of the equipment cost through introduction of
the system matching the electricity and heat demands.
Reservation of electricity against disasters.
Energy Efficiency
High-efficiency system that suppresses the losses of primary
energy (100%) to 22 to 28%.
Power generation losses 3-4%
Primary energy 100%
1.
Making Energy Supply Efficiency Higher by Co-generation System
Electricity
36 to 39%
Cooling water
Exhaust gas
Heat exchange
Approach 6:
Overall
efficiency
72 to 78%
Heat
35 to 39%
Others: 4
to 5%
Exhaust gas losses
15 to 18%
Economy Comparison
With the economic merit, the equipment cost for introducing
the co-generation system can be recovered in 3 to 5 years
(simple investment recovery period).
7.
Before introduction of co-generation
system
Cost for heat value
generation by
direct combustion
After introduction of co-generation
system
Cost for heat value
generation by
follow-up
combustion
Electricity
price
Electricity
price
Electricity charge supporting
private power generation
Private power generation
running cost
Heat recovery system flow chart (typical example)
Exhaust gas heat
exchanger
• Power generation
and hot water
supply system
Exhaust gas
Hot/cold water heat
exchanger
Exhaust gas
Hot water
supply
Exhaust
gas heat
exchanger
Water
supply
Electricity
Power
generator
Hot/cold water
heat exchanger
Flow
rate
Cooling
water
Power
Exhaust
gas
Gas turbine
Hot water
supply
Cooling
water heat
exchanger
Gas or diesel
engine
Water
supply
Power
generator
Fuel
Fuel
• Power generation and
steam/hot water supply
system
Exhaust gas
Steam
Steam
Exhaust heat boiler
Exhaust gas
boiler
Electricity
Power
generator
Water
supply
Exhaust gas
Exhaust
gas
Cooling
water
Water supply
Power
Exhaust
gas
Gas turbine
Hot water
supply
Gas or diesel
engine
Power
generator
Cooling water heat
exchanger
Water
supply
Fuel
Fuel
• Power generation, air conditioning, and hot
water supply system (gas or diesel engine)
Exhaust gas
Hot water absorption cooler
Exhaust gas heat exchanger
Exhaust gas
Warming heat Warming
exchanger
Electricity
Power
generator
Exhaust
gas
Cooling
water
High temp. Low temp.
water tank water tank
Gas or diesel
engine
Hot water supply
Hot/cold water heat exchanger
High water tank
Fuel
Cooling
Cooling water heat exchanger
I-47
Water supply
Application of High-efficiency Lighting Apparatuses
Incandescent lamp
Type of light source
Fluorescent lamp
Lamp
Power
HID lamp
Input
Power
Total
luminous flux
(1)
Color
Average color Rated life
Overall
efficiency (2) temperature rendering
Incandescent lamp
index [Ra]
Incandescent lamp
General lighting
Ball bulb
Crypton lamp
Halogen lamp
Single-ended mold
With infrared rediation reflection film
Small type (low-voltage type)
Double-ended mold
Fluorescent lamp
Bulb type fluorescent lamp
Electronic lighting – bulb color
Electronic lighting – daylight white
color
4-tube type – daylight white color
General fluorescent lamp
White
Same as above (power saving type)
Three-wavelength type – daylight
white color
High-frequency Hf) type
32W lighting – daylight white color
Compact type
27W type – daylight white color
HID lamp
Color rendition
improved highpressure sodium lamp
General highpressure sodium
lamp
Metal halide lamp
Fluorescent
mercury lamp
Hf type threewavelength
fluorescent lamp
Three wavelength
Mitsubishi long
type fluorescent
fluorescent lamp
lamp
General white
fluorescent lamp
Compact
fluorescent lamp
Bulb type
fluorescent lamp
Halogen lamp
General
incandescent lamp
Overall efficiency (1m/w)
Approach 7:
Fluorescent mercury lamp
Metal halide lamp
Same as above (Double-ended mold)
High-pressure sodium lamp
Same as above (improved rendering type)
I-48
List of Attachments
SITUATION IN CAMBODIA
Attachment I-2: The Energy Conservation Technology Realized in Japanese Garment
Industry: Presentation Slide List
Attachment I-3: The Energy Conservation Technology Realized in Japanese Garment
Industry
Attachment I-4: Information Required for ASEAN Industry Audit (Garment Industry)
Attachment I-5: Company Information for Factory Energy Conservation /
Questionnaire (M&V International Manufacturing Ltd.)
Questionnaire (June Textiles Co., Ltd.)
SITUATION IN CAMBODIA by ACE
KINGDOM OF CAMBODIA
NATION RELIGION KING
*********
COUNTRY REPORT
ON
ECONOMIC AND ENERGY SITUATION IN
CAMBODIA
Ministry of Industry Mines and Energy (MIME)
Department of Energy Technique (DET)
#47 Norodom Blvd., Phnom Penh, Cambodia.
Fax : (855) 23 428 263
E-mail : [email protected]
Ⅰ－A－ 1
ECONOMIC SITUATION
COUNTRY OVERVIEW
Cambodia located in South East Asia borders by Thailand and Laos to the north
Vietnam to the east, gulf of Thailand and Vietnam to the South and the west part border by
Thailand gulf of Thailand. Cambodia has a total area of 181,035 Km2 divided into 24
provinces and one municipality according to the final census results of 1998 shows the total
population of 11,437,656 and 85% of the people live in rural areas and mostly based on
agriculture. The GDP per capita is varies between $240-$290 with an average growth rate of
1-4% (1997 - 1999). Literacy and education shows adult literacy as 68.8%, literacy rate are
highest in Phnom Penh with rate of 90.9%, 74.8% and 82.2% for both sexes (see table 1)
when compared with these rates, the rural sector rates were substantially lower and the male,
female and both sexes literacy rates were 77.9%, 54.7% and 65.2%respectovely, as expected,
male rate were higher than female rate in all sectors. Adult literacy rates appear to have
increase by approximately 2.5% during the past few years.
Table 1 : Adult literacy rates by sex and Status, Cambodia
Type/ Sex
Both sexes
Male
Female
Cambodia
67.8
80.0
57.7
Phnom Penh
82.2
90.9
74.8
Other Urban
72.9
84.0
63.7
Rural
65.2
77.9
54.7
In common with other countries on the region, Cambodia possesses unique cultural
and natural assets that have considerable international appeal. The most well known place in
Cambodia is the temple city Angkor situated about 300Km North of Phnom Penh in the
province Siem Reap, just a few Km from Siem Reap town. 95% of the population practice
Buddhism as their religion the remaining Moslem and Christian.
1 Geographic condition including land use pattern and ownership
The tropical climate varies between 20°C-35°C throughout the year fully one-forth of
the total land and of the country is appropriate for cultivation by geography condition the
country divided into 4 regions: Plain region, Tonle Sap region, Coastal region and Plateau
mountain region
2 Demographic condition including rural urban migrate
The final population of Cambodia as on March, 1998 according to the 1998 census is
11,437,656, the population of Cambodia by sex and urban rural residence is given in Table 2.
Table 2. Population of Cambodia by sex and urban rural residence
Total/Urban/Rural
Total
Urban
Rural
Both Sexes
11,437,656
1,795,575
9,642,081
Males
5,511,408
878,186
4,633,222
Females
5,926,248
917,389
5,008,859
Refer to the 1998 census 4/5 of the population live in the Central plains, which are
dominated by the Mekong River and Tonle Sap Lake. Cambodia's population density was 63
inhabitants/Km2 in 1998 in comparison to that was the density of population 37
inhabitant/Km2 in 1981 and 54 inhabitant/Km2 in 1993. In 1998 the Plain Region showed the
highest density of population (235 inhabitants/Km2) the Province Kandal with 300
persons/Km2; with the Capital Phnom Penh 3,744.5 persons/Km2, followed by Takeo with
Ⅰ－A－ 2
222, Prey Veng with 194, Svay Rieng 161 and Kampong Cham with 164 inhabitants/Km2.
The lowest density of population was found in the Plateau and Mountain Region (17.5
Persons/Km2) Mondulkiri with 2.2 Persons/Km2, Stung Treng 7.3 Persons/Km2, Ratanakiri
and Preah Vihear each with 8.7 Persons/Km2 Kampong Speu with 85 inhabitants/Km2. The
Coastal Region shows identity of 49 inhabitants/Km2 and the Tonle Sap Region shows 51.8
Persons/Km2.
Compared to other countries in this region the density of population of Vietnam's Red
River Dilta is more than one thousand in habitant per Km2.
3 Administration
Cambodia is a constitutional Monarchy King Norodom Sihanouk is the head of state.
Prime Minister head a government The National Assembly has 122 members. The
Administration of Government is through 24 provinces and a capital Phnom Penh is the
Political cultural and economic center.
4 Economic and Social Situation
The Cambodia economy was devastated during the war in 1970's and 1980's. Since that
time some progress has been made in rebuilding the economy most of the labor force are
engaged in agriculture while rubber, fisheries, gem mining and food processing are the main
industries. Last two year some same cement jute and cotton factories has been re-established
and the clothing manufacture and tourist industries have expanded. Private investors from
France, Malaysia, Singapore, Thailand. South Korea have established themselves in recent
Nears. Cambodian main import are petroleum, automobiles, motorcycles, machinery
equipment and construction materials. The gross domestic product (GDP) and the GDP
percent from 1994 to 1999 shown in the Table below.
1994
1995 1996 1997
1998 1999
Gross domestic product GDP (in MUS$) 2,385 2,923 3, I I3 3,033 2,868
3,182
GDP per capita (USS)
241
284
291
27-1
251 271
GDP (%in crease)
4% 7.60% ° 7.0% 1.0%
I.0% 4.0%
Transportation and communications there are six national highways which emanate
from Phnom Penh of those, except for the highway to Sihanouk Ville and to Kompong Cham,
all other highways are in poor repair some of the small roads are impassable. While there is
some public transport in the capital and some provincial cities, many Cambodians use
bicycles and motorcycles for travel. Walking and buffalo drawn casts are commonplace.
Railway services are available from Phnom Penh to Battambang, the Thailand border and to
Sihanouk Ville.
There are several private companies participate in the Telecommunication System
such as : Mobitel, SAMART Shinawatra etc. Development in this sector became better
compared to the past two years.
Health and welfare Adequate medical care is not available to the large past of the
population. The Government is implementing a basic health care system and International
relief organisation are working with hospitals to improve the system. The sanitation is poor.
Potable water is not read available, the life expectancy in 1995 was 53yrs for females and
50yrs for males.
Situation in the Past and at Present
1. Cambodia's power sector was severely damaged by years of war and neglect. In
spite of the Government's efforts, its institutions remain weak and power supply is unreliable,
costly, and mostly limited to urban areas. Consequently, only 12 percent of the households
Ⅰ－A－ 3
have access to electricity: the lowest electrification ratio among East Asian countries. In most
cities, deficiencies in the power supply remain due to weak management and poor conditions
of generation and distribution facilities. Further, the lack of a transmission system prevents a
more efficient use of power supply options resulting in one of the highest electricity costs in
the world.
2. After a two-year economic slowdown caused by a long political stalemate and East
Asia's financial crisis, political stability is emerging and Cambodia appears to be ready to
resume a sustained economic growth. GDP growth for 1999 is expected to reach 4% (as
opposed to 1% in 1998) and gradually increase to 6% in 2001while Cambodia initiates a new
era as a member of the ASEAN. Important part of this growth will be associated to industrial
expansion stemming from regional trade opportunities and located mostly in the Phnom Penh
– Sihanouk ville area. Therefore, the next 4 to 5 years will be characterized by an increasing
demand for infrastructure in this area. However, while macro economic stability and growth
are expected to be achieved progress has yet to be made in addressing fundamental fiscal
problems, including a weak domestic revenue mobilization and inefficient public expenditure
management. The efficient development of the power sector, open to private participation,
will be critical to support Cambodia's goal for sustainable economic growth and social
development due to the following reasons (a) the reliable provision of electricity services at
lower costs is an essential condition for the growth of a competitive industry, and (b) power
investments for the period 1999-2003 are expected to reach I1% of domestic investment and
2-2.5% of GDP, hence, a power sector successful in attracting direct private investment will
minimize the use of public resources thus reducing the pressure on fiscal management
problems and releasing public fluids for social objectives.
3. Cambodia's power sector is today at a crossroads. After a period of emergency
rehabilitation and reconstruction, the sector is ready to face development objectives aimed at:
(a) improving sector efficiency and reducing electricity costs; (b) consolidating the ongoing
reform; and (c) addressing the sector's social concerns, particularly the extension of
electricity services to rural areas. It is therefore necessary to formulate and implement a
power sector strategy addressing the most salient problems of the sector:
• lack of a legal and regulatory framework, including the lack of transparency and
competition in the current process for private sector entry;
• an entrenched public-oriented approach towards the management of public
utilities;
• poor technical, commercial and financial performance of the sector;
• weak investment planning;
• lack of resources and strategy to provide electricity services to rural areas; and
• a weak human resource base.
1.3.1 Energy resources
The energy situation in Cambodia is characterized by its very low conventional by its
very low conventional energy consumption as compared to other Asian countries. The major
sources of energy for Cambodia are biomass and imported petroleum products. Biomass
energy sources account for an overwhelming share; total woodfuel consumption during 1994
was estimated to be 1617 ktoe (FAO, 1997).
Cambodia’s sources of energy consist primarily of indigenous supplies of wood, which
together with other forms of biomass represented 83% of the total energy supply in 1995,
while the remaining 17% consisted of imported petroleum products
Ⅰ－A－ 4
Diesel oil and gasoline account for the bulk of petroleum product imports.
Table Estimated Energy Supplies, 1995
Energy Source
Wood
Other Biomass & Dung
Petroleum Products
Fuel Oil
Diesel Oil
Kerosene
Kerosene Jet Fuel
Motor Gasoline
LP Gas
Total
Tones
5,621,035
113,300
419,475
50,553
183,431
25,015
10,748
145,983
3,745
Terajoules
81,505
1,645
1,8107
2,056
7,835
1,112
468
6,467
170
101,257
1000TOE
1,941
39
431
49
187
26
11
154
4
2,411
% of Total
80.5 %
1.6 %
17.9 %
2.0 %
7.7 %
1.1 %
0.5 %
6.4 %
0.2 %
100 %
Tones of Oil Equivalent Source: MIME, Energy Department
Electricity in Cambodia is generated in 22 isolated systems, mostly from diesel
generators. Total installed capacity of electricity generation in Cambodia is estimated to be
122MW, of which 85MW are in Phnom Penh. As a result of the small size of generation units
(300KW to 5MW unit size), dependence on oil-based generation, and large distribution losses,
the unit cost of electricity in Cambodia is among the highest in the region.
1.3.2 Demand and Supply Forecasts
Table 2 Energy Demand Scenario *, 1995-2020
Terajoules
Total
Wood
Charcoal
Other Bio.
LP Gas
Kerosene
Jet Fuel
Gasoline
Diesel
Fuel Oil
Electricity
Households
Wood
Charcoal
Kerosene
LP Gas
Diesel
Electricity
Other
Service Sector
Wood
Charcoal
Kerosene
LP Gas
1994
1995
94,148
77,721
1,097
1,754
103
1,323
725
6,002
4,580
65
777
81,530
77,329
935
1,046
35
80
352
1,754
918
23
149
278
69
94,583
77,721
1,097
1,642
170
1,112
468
6,089
5,393
64
827
81,395
77,329
935
879
57
176
378
1,642
989
23
149
233
113
1996
1997
1998
1999
2000
2,005
2,010 199505% / Yr
99,123 102,848 106,797 1,110,861 115,104 138,463 152,244
79,980 82,288 84,662
87,103 89,616 103,552 106,344
1,121
1,143
1,167
1,189
1,213
1,367
1,357
1,633
1,625
1,616
1,608
1,600
1,559
1,351
212
257
310
362
421
729
1,050
1,420
1,481
1,549
1,607
1,678
2,081
2,430
725
761
799
389
881
1,125
1,435
7,301
8,073
8,939
9,836 10,766 15,288 20,284
5,751
6,149
6,576
7,031
7,521 10,539 14,783
73
79
86
93
102
158
249
907
991
1,093
1,191
1,308
2,066
2,962
83,830 86,224 88,685
91,215 93,819 108,240 110,608
79,536 81,804 84,134
86,527 88,985 102,546 104,730
957
979
1,002
1,026
1,050
1,179
1,135
1,117
1,155
1,190
1,226
1,263
1,468
1,512
88
120
153
187
222
416
546
84
86
88
91
93
106
107
415
45
501
551
607
967
1,229
1,633
1,625
1,616
1,608
1,600
1,559
1,351
1,057
1,129
1,231
1,310
1,420
2,104
3,189
18
16
13
11
10
5
3
149
147
146
143
142
152
165
303
325
359
381
415
614
918
124
138
158
175
199
313
504
Ⅰ－A－ 5
3.9%
2.9%
2.2%
-0.5%
15.7%
6.5%
9.2%
9.6%
6.9%
9.4%
9.6%
2.9%
2.9%
2.3%
5.3%
22.1%
-4.9%
9.8%
-0.5%
7.8%
0.2%
10.2%
10.7%
Diesel
Electricity
Industry
Wood
Charcoal
Diesel Oil
Fuel Oil
Electricity
Transport
Gasoline
Diesel
Jet Fuel
Fuel Oil
33
80
367
391
405
405
307
370
13
13
22
22
63
63
58
57
11,174 11,674
6,002 6,089
4,445 5,116
725
468
2
1
36
426
465
425
15
25
72
66
13,633
7,031
5,606
725
1
39
464
512
468
17
28
78
72
14,832
8,073
5,997
761
1
43
512
564
515
18
30
85
80
16,154
8,939
6,414
799
1
46
553
619
565
20
33
92
87
17,537
9,836
6,861
839
1
50
605
681
622
22
37
101
96
18,988
10,765
7,341
881
1
75
945
1,096
1,001
36
59
157
154
26,712
15,288
10,299
1,125
1
114
1,486
1,764
1,611
58
95
248
247
36,188
20,284
14,468
1,435
1
*Demand by final consumers, not including fuel for electricity generation or wood for charcoal
Cambodia’s energy supplies forecasting 1990-2010 has not yet been estimated
ELECTRICITY SECTOR
A. Ministry of Industry, Mines and Energy (MIME)
MIME is responsible for policy and planning of the electricity sector and also for
management of supplies in 19 provinces of Cambodia.
One of MIME's important activities is its leading rule in Renewable Energy activities
throughout the rural area. This includes Solar Energy, Biomass and Biogas, Hydropower. The
potential for wind energy in Cambodia has not yet been assessed.
B. Electricity Authority of Cambodia (EAC)
The ElectricityAuthority of Cambodia is being enacted under the proposed Electricity
Law and will be responsible for regulating the provision of electricity power services. The
responsibilities of EAC are expected to include:
• Licensing of companies for generation, transmission, distribution and retailing of
electricity, including consolidated and subcontractor arrangements
• Review and approval of tariffs
• Monitoring of investments and power acquisitions by license,
• Development and monitoring of performance, technical, safety and environmental
related standards
• Certification and inspection of metering
• Establishment of accounting standards
• Enforcement of electricity law
C. Electricity du Cambodge ( EDC)
EDC is a public sector utility that has the non-exclusive responsibility for generation,
transmission, distribution and retail of electricity throughout Cambodia. It presently provides
the supplies to the nation's capital Phnom Penh and through grid extension to Kandal province
and also the provincial cities of Sihanouk ville, Steam Reap and Kompong Cham. EDC is also
expected to assume responsibility, for the fist three to five years, of the network rehabilitation
and expansion being funded by the ADB in seven main provincial towns
Ⅰ－A－ 6
-0.6%
9.2%
10.5%
10.5%
10.5%
10.5%
9.5%
10.4%
8.6%
9.6%
7.2%
9.2%
0.0%
Phnom Penh has the largest power system in the country. It serves about 80,000
customers with a peak demand of 85MW Key data 2 as 31 December 1999 for EDC include:
• Total installed generation capacity
• Maximum generation output
• Energy Generation
• Energy Sales (excludes own usage)
• System Losses
• 115 kV Network
• 22 kV Network
115 MW
97MW
387 GWh
284 GWh
24.05 %
23 circuit-km
341.04 circuit-km
D. Demand/Supply Forecasts 1999-2016 key issue
Over the past several years, the demand for electricity has been growing along with
the economic growth. The demand growth has averaged 30-40MW per year. The production
of electricity in Cambodia has not respected to the demand The present role of EDC is to
improve the efficiency of generation, transmission and distribution on electric power in
Cambodia.
Electricity Demand
The demand and energy forecasting is important for the electric power system
planning The forecasting of electricity for Cambodia has been formulated by several
institutions, such as EDC (Corporate Planning Department), in 1994, Worley International
Corporation in 1994, which was funded by World Bank project, the NEWJEC Inc. (German
Company) funded by Asian Development Bank in 1998, and Nippon Koei in 1996 under the
project of Japan International Cooperation Agency (JICA)
Table 3 Expected Power Generation output for Cambodia (MW)-Base Case
Year
Banteay Meanchey
Battambang
Kampong Cham
Kampong Chhnang
Kampong Speu
Kampong Thom
Kampot
Kandal
Koh Kong
Kratie
Mondul Kiri
Phnom Penh
Preach Vihear
Prey Veng
Pursat
Ratanak Kiri
Siem Reap
Sihanouk Ville
Stung Treng
Svay Reing
Takeo
Total
1998
4.0
3.5
4.9
1.1
1.0
1.5
2.7
2.2
0.7
1.9
0.1
60
0.3
1.7
1.3
0.9
3.0
2.9
0.2
1.0
1.5
97
2000
5.9
5.7
7.8
1.6
2.0
2.4
4.8
3.9
0.9
3.2
0.2
93
0.5
3.0
2.3
1.1
4.2
3.4
0.5
1.6
2.4
150
2002
8.0
8.6
10.5
2.2
2.9
3.4
8.1
5.5
1.2
4.4
0.3
131
0.7
4.4
3.2
1.3
5.6
4.1
0.7
2.2
3.4
212
2004
10.0
12.0
13.0
2.8
3.8
4.5
10.1
6.7
1.4
5.7
0.4
170
1.0
5.5
4.2
1.5
7.1
4.8
0.9
2.8
4.2
273
2006
12.0
15.0
15.2
3.4
4.7
5.3
13.9
7.9
1.7
6.8
0.5
207
1.1
60.6
5.0
1.7
8.4
5.5
1.1
3.2
4.9
331
Source: Government of Cambodia, MIME Nov. 1998
Ⅰ－A－ 7
2008
14.5
18.5
17.9
4.0
5.9
6.4
16.3
9.2
2.0
8.0
0.6
256
1.4
7.8
5.9
1.9
10.0
6.3
1.3
3.9
5.8
404
2010
17.3
22.4
20.5
4.7
7.2
7.5
18.9
10.6
2.3
9.4
0.7
304
1.6
9.0
6.9
2.2
11.5
7.3
1.5
4.4
6.7
477
2012
20
27
23
5
9
9
25
12
3
11
1
356
2
10
8
2
13
8
2
5
8
558
2014
24
31
26
6
12
10
28
13
3
12
1
418
2
11
9
3
15
10
2
6
8
651
2016
26
33
29
7
16
11
33
15
4
14
1
484
2
13
11
3
17
11
2
6
9
746
RENEWABLE ENERGY SECTOR
a) Institutional Setting
In 1995, a working group called " Solar Energy Application (SFA) " was formed by
Technical Energy Department of Ministry of Industry Mines and Energy SEA takes
responsible in renewable energy and plays the role such as follow:
-
cooperation and coordination with Ministries, agencies concerning and donor,
data collection basically for study,
research, setting up the solar energy system I pilot project), training local people.
promoting and disseminating of this field,
report to MIME the results of the study.
b) Present use Potential and Direction for Development
Since a beginning of the oil crisis 1973, which remarkably influenced power
development programs all over the world massive technological and research offers arc borne
concentrated in the field of Renewable Energy resources. In solar sector for electricity
generation, the conversion process via solar cells is being more and more attractive and u is
becoming the most promising.
Refer to technological development of the world time by time. day by day and
according to the situation in Cambodia that technological development in all field are very
slightly development such as energy sector of this renewable energy which is very slowly
developed compared with the neighboring countries. Even through the royal government's
offer improving and developing of all sectors same priority sector has been promoted day by
day.
The Royal Government also pushed all ministries takes more attention for rural and
remote areas development.
Solar Energy
Cambodia has a tropical climate with favorable condition for the utilization of solar
energy. This is reflected in the annual mean temperature in the low-lying plain, which is about
26ºC. Measurement during 1981-1988 at Phnom Penh indicate that the average sunshine
duration varied between 6.1 and 9.7 hours per day in August and December respectively.
The total PV capacity about 204,586 Wp was installed in Cambodia since 1997. The
PV installation use for private rural houses, schools, health center, orphans, pagodas
telecommunication, etc..
The most recently under the financing of New Energy and Industrial Technology
Development Organization (NEDO), we have installed the PV battery, charging system in
Phnom Chino and PV water pumping in school at Kompong Chnaing province. We hope that
the out put of projects will:
-
increase the economic condition of people of those
areas increase the knowledge of the people
as a bridge for transfer the civilization and technology (people will get information
through the radio and TV)
Ⅰ－A－ 8
Hydropower
Cambodia is the one of the South-East Asian country rich in water resources and has the
second largest hydropower potential in the lower Mekong Basin According to the latest
preliminary study the total hydropower potential of the country is estimated at 10,000MW,
which 50% is in the Mekong, 40% in its tributaries and the remaining 10% in the southwestern coastal area outside the Mekong river basin
Cambodia's future demand is projected at 175MW in 2000, 380MW in 2010 and
760MW in 2020, due to the improving situation this increase in demand cannot be satisfied by
the existing power station, The most urgent action for the utilities lies in the rehabilitation and
upgrading of existing power plants, This is considered critical as a continued shortage in the
electricity supply will seriously restrain the ongoing reconstruction and socio-economic
development of the country.
The need for Cambodia will be to use Cambodia's Hydropower potential in order to
meet future electricity demand and to reduce the dependence upon imported fuel and to
exchange of hydropower with neighboring countries.
Before the civil war, the Kirirom I Hydropower station was running with an installed
capacity of 10MW, and energy was delivered to Phnom Penh through a 110 kV transmission
line over a distance of 120Km. This Hydropower Plant was completed in 1968 as the first
hydropower station in Cambodia, but it was completely destroyed during the war after only 13
months of operation. However the facilities have been started to restore by Austrian and
Swedish Aid projects. The Prek Thnot project with an installed capacity of 18MW was
implemented near the Kirirom I Hydropower station, but the construction was interrupted in
1970 due to the war In 1992 one small Hydropower Station at Present in Cambodia, and all of
the operating generator; now are diesel and okil-fired engines depending on imported oil
Wind Energy
Up to present the generation of electricity from wind still yet implemented even. We
have the potential of this resource especially at the coast and the mountainous regions which
tile wind velocity generally is about l0m/s Measurements during 1981-1990 at Phnom Penh
indicate that the average wind velocity varied between 4.8 and l4.8 m/s in January and July
respectively. There are some installation of wind energy for water pumping implemented by
the NGO, (Christian Outreach) for irrigation in some place of Prey Veng Province about 5
unit:
Biomass
As in almost all Asian countries, biomass energy plays a major role in satisfying the
rural energy elements of Cambodia. According to an estimate by the FAQ, wood fuel
consumption in 1994 was 1,618 ktoe, and accounted for 84% of the total energy consumption
in the country. The total potential available wood fuels during the same year was 24.5 million
toe. Besides, and estimated amount of 167 ktoe of agro-industrial processing residues were
also available as fuel in 1994 (FAO 1997). Due to lacking of modern technology in this field
the development of the biomass system still very low. In Cambodia the biomas system are
basically from Agriculture wastes and generally used for cooking and small handicrafts in
rural areas.
Biomass is also used in the industrial sector for copra drying and steam generation.
However, no reliable estimates of the amount of Biomass energy consumption for these
purposes are available.
Ⅰ－A－ 9
Biogas
The Biogas system in Cambodia mostly base on the domestic animal wastes such as
cows, buffaloes, pigs, etc...
The systems were implement by Christian Outreach, Food Agriculture Organization,
Padex,;;; in some Provinces : Prey Veng, Kandal, Kompong Speu, Svay Rieng, Ta Keo, Kom
Pot, and Siem Riep, There seems to be considerable potential for biogas development in
Cambodia. The energy potential of biogas from recoverable animal wastes in the country has
been estimated to be about 228 ktoe/year (Bhattacharya et al., 1997).
REFERENCES :
-
-
-
General Population Census of Cambodia 1998
National Institute of Statistics, Ministry of Planning, Phnom Penh.
Funded by : United Nations Population Fund, July 1999
Report on the Cambodia Social-Economic Survey 1999
National Institute of Statistics, Ministry of Planning, Phnom Penh
Sponsored by : United Nations development Programme, Swedish International
Development Cooperation Agency and Executed by the World Bank
Report on Energy Policy and Conservation in Cambodia
Ministry of Industry Mines and Energy (MIME), Technical Energy Department
Sponsored by : New Energy and Industrial Technology Development Organization
(NEDO), Japan
Ⅰ－A－ 10
The Energy Conservation Technology Realized in Japanese Garment Industry
Presentation Slide List
Ｎｏ．
Ｔｉｔｌｅ
1
The Energy Conservation Technology Realized in Japanese Garment Industry
2
Electric Power Management
3
Steps for Power Saving Promotion
4
Peak Cut by Demand Controller
a. Check & improvement of daily load (example)
5
b. Execute approximate demand management by demand controller
6
Power Factor Improvement
7
Guidance for Management (Example)
8
Energy conservation guidance for illumination facilities (example)
9
Illumination Standard of Factories & Offices
10
Energy conservation by introduction of high-efficiency lighting apparatus
11
Check points of compressors for enegy conservation
12
Energy conservation cost-down by control system of number of compressors (example)
13
Guidance for air-conditioning electric power (example)
14
Guidance for energy conseeeervation of boiler
15
Diesel Engine Generator Energy Saving,
16
Heat recovery system flow (example)
17
More information
Diesel Engine Energy Efficiency
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Ⅰ－A－11
Ｎｏｔｅ
Cover Sheet
The Energy Conservation Technology
Realized in Japanese Garment Industry
December, 2002　at Cambodia
February, 2003 at Philippine
〔ECCJ〕
1
ECCJ
Electric Power Management
(1) Priority Efforts for Energy Conservation
① Understand the structure of electricity rates
② Grasp the current status of electricity usage
(2) Reduce the contract demand & maximum
demand of electricity as well as electricity
consumption volume
2
ECCJ
Ⅰ-A-12
Steps for Power Saving Promotion
* First step: appropriate usage & management of
existing facilities
* Second step: introduction of energy conservation
equipment
* Third step: radical modification of production facilities &
process, etc.
Start from small-scale investment of the first & second
steps, going on to the next step
3
ECCJ
Peak Cut by Demand Controller
a. Check & improvement of daily load (example)
electricity
electricity
230
160
90
8
16
8
(actual status)
16
(after improvement)
4
ECCJ
Ⅰ-A-13
b. Execute appropriate demand management by demand controller
Analyze the daily load curve of the day when the maximum electricity was recorded
kW
224kW
230
D
C
B
115
A
8
(hours)
16
Load diagnosis (example)
A …. power capacity of vulcaniztion press & oil pressure: 100KW
B …. power capacity of mixing roll: 50kW
C …. power capacity of air-conditioner: 50kW
D …. power capacity of compressor & lightening: 50kW
5
ECCJ
Power Factor Impovement
a. When the required volume of condenser is calculated to improve the power rate from 98% (the
actual maximum electric power 210kW) to 100%,, the results would be as below.
210kW
cosθ=0.98
Required volume of condenser
Required volume of condenser= 210×tanθ=210×0.2=42KVA
b. location method of condenser for
power rate improvement
The Chugoku Electric Power
6600V
Existing
condenser
Existing
30KVA×2 units
37kW
Dust collector blower
c. comparison of investment & merit
New low
power
condenser
30KVA
・investment 30KVA condenser　…　50,000 yen (Instrument cost only. Setting work cost excluded.)
・merit　…　cost reduced by approximately 20,000 yen/y
6
ECCJ
Ⅰ-A-14
Guidance for Management (example)
Present a graph to the employees so that they would be aware of electricity
consumption.
1995
1996
Jan. Feb. Mar. Apr. May June July Aug. Sep.
Make a graph of electricity Present a graph to the employees so that they would be
aware of electricity consumption of pajama production to promote awareness of energy
conservation.
ECCJ
Electricity intensity
Pajama production volume
(remarks)
(1996)
Pajama production volume
Electricity intensity
(electricity consumption (kWH) /
pajama production volume)
Jan.
Feb.
7
Mar.
Energy conservation guidance for illumination facilities (example)
1. Automatic blink switch (pattern control by time zone) & adjustment of
lightening by natural light for window-sides.
2. Turn off the lights of vacant rooms.
3. Take off lamps which are not used, and use natural light for effective
energy conservation.
4. Change wide area illumination to local illumination.
5. Usage of too many fluorescent lamps causes elevation of temperature,
and would be a load to the air-conditioner.
Improve the situation by changing ceiling illumination to local illumination.
8
ECCJ
Ⅰ-A-15
Illumination Standard of Factories & Offices
illumination
LX
3,000
2,000
1,500
factory
work
production of precision instrument & electronic
components, fine optical works at printing factories
office
location
location
dashbord & control
board at control room
etc.
･assembling(a), -audit(a), -test(a)
･sorting(a), -planning, -designing
office room (a), business room, design room, drawing room, entrance hall (daytime)
sorting, audit at fabric factories, typesetting & calibration design room, drawing
room
at printing factories, fine opticas works at chemical
factories such as diagnosis
1,000
･assembling(b), -audit(b), -test(b)
･sorting(b)
750
500
300
200
normal optical works of regular production processes
control room
electricity room
air-conditioning room
rough optical works
･specific duties
･packaging(b), -packing(b)(c)
office room (b), executive room, meeting room, printing
room, TEL exchange room, computer room, control room,
clinic
meeting room, reception office, ●power distribution panel, dashboard at electricity room
&
waiting room, dining hall,
machinery room
kitchen, recreation room,
●reception
training room, janitor's room,
storeroom, work room, vault,
entrance hall(nighttime),
electricity room, auditorium,
elevator hall
machinery room, elevator
-
･assembling(c), -audit(c), -test(c)
･sorting(b), -packaging(a), -desk work at warehouses
washroom, bathroom,
corridor, stair, lavatory,
rest room
150
entrance, corridor,
passage, warehouse,
stair, rest room,
lavatory
100
rough optical works
･specific duties
･packaging(b), -packing(b)(c)
75
works such as loading, unloading & removing
50
indoor escape stair,
warehouse, indoor
power equipment
indoor escape stair
outdoor(passage for
premise security)
30
20
10
Remarks: 1. (a) in the chart indicates those which are fine and weak in contrast, which require high accuracy. (b): interim of (a) & (c). (c): rough ones, which are strong in contrast
2. (office room): for optical work or when you feel the interior of the room dark, due to the bright sunshine outdoor, (a) should be applied.
9
ECCJ
Energy conservation by introduction of high-efficiency lighting apparatus
HID lamp
fluorescent lamp
incandescent lamps
lamp
power
(W)
incandescent lamps
for general use
ball lamp
krypton lamp
halogen lamp
single-ended mold
with infrared radiation reflexion
film
small type (low pressure type)
double-ended mold
bulb type fluorescent lamp
electric lighting bulb color
electric lighting neutral white
color
4 pipe tube neutral white
color
general fluorescent lamp
white
ditto (electricity-saving type)
3-wavelength type - neutral
white color
ditto (electricity-saving type)
HF type
32W lighting - neutral white
color
color
compact type
color
color
fluorescent mercury lamp
metal halide lamp
ditto (double-ended mold)
high-pressure sodium lamp
ditto (improved rendering type)
input
power
(W)
total
luminous
flux (1)
(lm)
60
67
60
60
57
60
810
705
840
100
100
85
85
50
500
overall
efficiency (2)
(lm/W)
color
average color
temperatur rendering
index
e
(Ra)
(K)
life
(h)
13.5
12.4
14
2850
2850
2850
100
100
100
1000
2000
2000
1600
16
2900
100
1500
1680
19.8
2900
100
2000
50
500
1000
10500
20
21
3000
3000
100
100
2000
2000
25
25
1520
60
2800
84
6000
25
25
1460
58.4
5000
88
6000
23
23
1550
67.4
5000
84
8000
40
36
43
39
3000
3000
69.8
76.9
4200
4200
61
61
12000
12000
40
43
3450
80.2
5000
88
12000
36
39
3450
88.5
5000
88
12000
32
35
3200
91.4
5000
88
12000
45
49
4500
91.8
5000
88
12000
27
34
1800
62.9
5000
88
7500
36
40
2900
72.5
5000
88
9000
400
400
250
360
360
427
444
269
386
390
22000
40000
20000
47500
36000
51.5
90.1
76
123.1
92.3
3900
3800
4300
2050
2100
40
70
85
25
60
12000
9000
6000
12000
12000
remarks:
1. incandescent lamp is 0 hour index. Others are 100 hours total luminous flux. Index.
2 Total luminous flux. divided by input power. Indicates the brightness per input power.
ECCJ
Ⅰ-A-16
10
Check points of compressors for energy conservation
(1)Renewal to new type (high-efficiency compressor)
<expected effect> energy conservation at 7-15%
(2)Introduction of control system of number of machines
<expected effect> realization of minimum operating
machines
(3)Improvement of locating (intake air) conditions
●decline of intake air temperature
●reduction of intake air temperature resistance
<expected effect> realization of optimized energy
conservation operation
Improvement measures:
a. revision of inlet & exhaust outlet
b. optimization of ventilation fan volume
(4)Reduction of discharge pressure & terminal in use
<expected effect>discharge gauge pressure: 0.69MPa
(7kgf/cm2) to 0.59MPa
If pressure is reduced to (6kgf/cm2), energy conservation
is at appr. 9%.
(5)Repair of piping air-leak
<expected effect>
improvement of
1mmφhole×10 points
- energy conservation
equivalent to 5.5kW
compressor
Measures for pressure loss reduction:
a. regular maintenance of peripherals(filter, etc.)
b. looping of pipelaying, revision of pipe diameter
*Expected effect data differ due to use conditions & environment.
Confirm to the manufacturer about the measures & effect .
11
ECCJ
Energy conservation cost-down by control system of number of compressors (example)
<calculated by compressor current measurement>
Individual supply method (before improvement)
Total 526.05kWH/day
annual electricity volume (265days): 139,403kWH
electricity rate (@18yen/kWH): 2,509,254 yen
ECCJ
compressor number control method (after improvement)
Total 214.24kWH/day
annual electricity volume (265days): 56,774kWH
electricity rate (@18yen/kWH): 1,021,932 yen
Cost-down effect
1,487,300 yen/year
Ⅰ-A-17
12
Guidance for air-conditioning electric power (example)
(e.g.1) Energy conservation of air-conditioning (cooling)
*reinforce the emission fan of the ceiling to exhaust hot air of the ceiling.
*curtains for windows are preferable.
(e.g.2) Energy conservation of air-conditioning (cooling)
*set the temperature at 28℃.
(by setting the temperature 1℃ higher, energy conservation at appr.10% could
be expected for air-conditining heat source. )
(e.g.3) Consideration of introduction of eco-ice
peak difference between daytime & nighttime is large, due to air-conditioning load
(cooling) in the summer.
Eco-ice is a system to restrain the electricity usage by storing the electricity to
heat source, and supply heat source in the daytime
13
ECCJ
Guidance for energy conservation of boiler
(e.g.1) Prevention of diffuse heat loss from vapor piping
reinforce the thermal insulation of vapor piping of factories to prevent diffuse
heat loss
(e.g.2) renovation of degradation & efficiency improvement of decrepit boiler
*merit calculation was done and degradation renovation plan was proposed
for the factory
*the vapor header part was not kept warm, causing heat loss. Reinforcement
of the thermal insulation of vapor piping would prevent diffuse heat loss
14
ECCJ
Ⅰ-A-18
Diesel Engine Generator Energy Conservation
Cooling water
Exhaust gas
Heat 35～39%
Energy efficiency
Electricity 36～39%
Heat exchanger
Primary energy
Diesel Engine Energy efficiency
72～78%
Others
4～5%
Exhaust gas
loss
15～18%
15
ECCJ
Heat recovery system flow (example)
heat exchanger of
exhaust gas
●Power generation
& hot water supply
system
exhaust gas
gas or
diesel
engine
●Power generation &
vapor hot water supply
system
exhaust gas
gas or
diesel
engine
●Power generation, air-conditioning & hot water
heat exchanger of
exhaust gas
supply system
exhaust gas
ECCJ
gas or
diesel
engine
16
Ⅰ-A-19
More Information
• You can find information regarding
ECCJ’s activities as well as trends of
energy efficiency and conservation
in Japan through accessing ECCJ’s
Internet Home Page:
• URL:
http://www.eccj.or.jp/index_e.html
17
ECCJ
Ⅰ-A-20
[A]
Information Required for ASEAN Industry Audit
(Garment Industry)
[Ⅰ] Necessary information （Answers to Questionnaire） before audit execution
(We want following information by November 29, 2002)
1. Company general information for factory energy consumption:
2. Production of major products
3. Utility consumption data
3-1~3 Garment-making process including generator power plant if you
have (Daily, Monthly and Annual)
4. Electric power receiving
5. Boiler
[Ⅱ] Necessary information during the audit execution
6. Necessary drawings and documents including energy intensity
7. Energy conservation plan
8. Energy conservation items in the past (including results)
9. Energy conservation items undergoing (including expected results)
10 Problem items if you have.
[Ⅲ] Item as requirement for garment maker selection
Two factories in the area of Phnom Penh
[Ⅳ] Necessary measuring instruments
Please prepare following measuring instruments for audit execution.
Temperature gauge, (Non-touch radiance type)
Illuminant meter,
Clamp type Ammeter (0~300A or 500A),
Clamp type Wattmeter
Etc.
Ⅰ－A－21
表Ⅰ－３－２　Company Information for Factory Energy Conservation / Questionnaire
[Garment Industry]
Company Name M & V International Manufacturing Ltd.
Replied by
Mr. WENY Wei,
Mr. SU Chin Pha
Division
Admin. Dept. officer,
Date
December 11 2002
Maintenance Manager
1. General
1
Name of Factory
V3 Factory of M & V international Manufacturing Ltd.
2
Address
No.1623 CHAK ANGRE KRAUM, Phnom Penh, Cambodia Tel: 855-23-425041
3
President
(Headquarter In MACAO)
Factory Manager
Mr. WENY Wei
Energy Manager
Mr. SU Chin Pha
4
Type of Industry
Garment (Sweater Production)
5
Capital
No reply
6
Annual Sales Amount
No reply
7
Number of Employees
Staffs: 80 - 90, Workers Approx. 3,000 [MIME Data: 3,958]
(Work time: 7:00 = 11:00, 12:30 - 16:30 + Over time)
8
Number of Engineers
Job of Headquarter (MACAO)
Electrical Engineers
Mechanical (Heat)
Engineers
9
Organization Chart
Refer to ANNEX 4
Total 5 factories (4 in Cambodia, 1 in MACAO, China)
10 Brief Company History
V3: Established in 1994, and V3 Factory started operation in 1997
11 Meteorological
Tropical Climate
Ⅰ－A－22
1
No.
- Sweater -
Garment Factory
Name of Production
1999
2288
Production Annual Production
Capacity Operating
Volume
Hour
(Pieces)
2. Production of Major Products
Sales
Amount
(Pieces)
2000
Ⅰ－A－23
2288
Annual Production
Operating
Volume
Hour
(Pieces)
Sales
Amount
(Pieces)
2001
5,102,531
5102531
Sales
Amount
(Pieces)
286 * 8 = 2288 hours/year
365 * 6/7 - 26 = 286 days/year
Max 30,000Pcs/day
Max. 677,000Pcs/month
Total Production = 5,102,531Pcs/year
2288
Annual Production
Operating
Volume
Hour
(Pieces)
2002
Sales
Amount
(Pieces)
MIME data (at Nov. 2002)
Total Employee = 3,958
Product = 33,500~33,600
Pcs/day
2288
Annual Production
Operating
Volume
Hour
(Pieces)
9
10
11
12
14
15
16
17
18
22
23
Capacity:
#1= 500KVA/400kW
20
Ⅰ－A－24
#3= 720KVA/576kW
19
24
25
26
27
28
Gene. #2 = 252kW, #3 = 228kW Total = 480kW (At 14:00 of December 12 2002)
18
(9h/day)
Average = 3,000 ~ 3,500kWh/day
#2= 720KVA/576kW
Power plant
generation (kWh)
17
16
15
14
13
12
11
10
9 City Water (t)
8 Well Water (t)
800m 3 /day (Tank capacity, Pump working time = 60m 3 /h * 15hours/day), Max. 900 ~ 1,000m3/day, Min. 700m3/day. No meters
21
7 River Water (m3)
20
No meters
19
6 Steam (t)
5 Compressed Air (m3)
4 LPG (t)
from EDC, 30.4days/Month
13
Oil from SOKIMEX (Singapore) & CALTEX (Cambodia)
8
1,800 ~ 2,000L/day (9h/day)
7
for Generators
6
3 Diesel Oil (kL)
5
Oil from SOKIMEX (Singapore) & CALTEX (Cambodia)
4
2,800 ~ 3,000L/day (9h/day)
3
for Boilers
2
2 Fuel Oil (kL)
1
Month / Date
Ave. 430kWh/Month for Lighting at night ・・・・ (30kW)
Name of Utility
1 Electricity (kWh)
No.
3A-1. Daily Utility Consumption
Garment-making process
29
30
31
Total
Diesel Oil (kL)
LPG (t)
Compressed Air (m3)
Steam (t)
River Water (m3)
Well Water (t)
City Water (t)
3
4
5
6
7
8
9
20
19
18
17
16
15
14
13
12
11
Power plant generation
(kWh)
Fuel Oil (kL)
2
10
Electricity (kWh)
Name of Utility
1
No.
Lower Heat
Value
February
March
(365*6/7-26)/12 = 23.9days/Month
No meters
From EDC
January
3A-2 Monthly Utility Consumption
April
May
Ⅰ－A－25
June
2002
July
August
September
October
December
71,700~83,650kWh
800*23.9=19,120m3
43 ~ 48kL
67 ~ 72kL
13,000kWh
November
Total
Diesel Oil (kL)
LPG (t)
Compressed Air (m3)
Steam (t)
River Water (m )
Well Water (t)
City Water (t)
3
4
5
6
7
8
9
20
19
18
17
16
15
14
13
12
11
10
Fuel Oil (kL)
2
(kWh)
3
Electricity (kWh)
Name of Utility
1
No.
Unit Price
(*)
1999
Purchase
Amount
(*)
Unit Price
(*)
2000
Ⅰ－A－26
(kWh,kL,t,m )
3
Consumption
8 ~ 9hours/day, 23.9days/Month, 12 months/year
No meters
Lower Heat
Consumption
Value
(kWh,kL,t,m3)
3A-3 Annual Utility Consumption
Purchase
Amount
(*)
(kWh,kL,t,m )
3
Consumption
*: US$ or Reils
Unit Price
(*)
2001
Purchase
Amount
(*)
860,400 ~
1,003,800
229,440
516 ~ 576
804 ~ 864
156,000
(kWh,kL,t,m )
3
Consumption
Purchase
Amount
(*)
(US$1 = 3,950R)
US$0.35
US$0.25
R600
Unit Price
(*)
2002
4. Electric Power Receiving
Items
No.
Unit
1999
2000
2001
2002
1
Receiving Voltage
kV
2
Maximum Demand
MW
3
Annual Electricity Consumption
MWh
4
Paid Amount of Electricity
5
Power Factor
6
Annual Operating Hour
h/y
8,760
7
Average Electricity
kW
30
8
Maximum Electricity
kW
9
Transformer Capacity per Unit
kW
10
Number of Transformers
11
In-house Generation Capacity
Note
0.38
1,020 ~ 1,160
US$ or Reils
No Transformer
kW
1,552
5. Boiler
Boiler No.
No.
1
Type
2
Built Year
3
Nominal Capacity (Steam)
Steam Pressure (kg/cm2G)
1
Lateral
type
1998
10
2
4
Lateral
Vertical typ Vertical typ
type
1996
1996
2000
10
3
10
10
Flue Boiler
N0.1: '97, No.2: '92 made
Actual ope.: 7kg/cm2
Steam Temperature (℃)
Evaporating Volume (kg/h)
4
4,200
1,560
780
6,000
Nominal Capacity (Electricity)
Generated Electricity (kWh)
Generated Voltage (kV)
Power Factor
5
Kind of Fuel
Bunker oil Bunker oil Bunker oil Bunker oil
Fuel Consumption
6
No meters
No Data
Operating Period (Hours/Day)
1999
2000
2001
2002
7
Operating Period (Hours/Year)
1999
2000
2001
2002
Ⅰ－A－27
6. Necessary Drawings and Documents
Items
No.
1
Plant Layout:
Layout is displayed as the Firebreak Chart.
2
Process Flowchart of Major Products
3
Energy Flowchart
4
Electric Skeleton Diagram
5
Structural Drawing of Major Equipment
No drawings
Measuring Points and Name of Instruments for Energy Consumption
6
Specification and Structural Drawings of Boiler
7
Energy Intensity : Energy Consumption / Output of Products
No.
Kind of Product
a
(Example)
Garment
Kind of Energy
Garment
1999
2000
2001
2002
Production
pcs/y
300,000
320,000
320,000
350,000
Fuel Oil
kL/y
3,000
3,200
3,100
3,300
MWh/y
3,000
3,200
3,200
3,300
Electricity
b
Unit
Production
Electricity (EDC)
Sweater
5,102,531
MWh/y
156
Fuel Oil
kL/y
804 ~ 864
Diesel Oil
kL/y
516 ~ 576
Max. 677,000Pcs/Month
Max. 30,000Pcs/day
c
Production
d
Production
e
Production
Ⅰ－A－28
7. Energy Conservation Plan
Nothing!
M & V wants to know or learn the methods how to do the energy conservation activities.
Ⅰ－A－29
8. Energy Conservation Items in the Past (including results)
Lighting:
When a fluorescent tube is blow-out, new one is exchanged from 40W to 36W.
9. Energy Conservation Items Undergoing (including expected results)
Nothing!
Ⅰ－A－30
10. In case you have any problem(s) in your course of promotion of energy
conservation, please circle the number(s) of applicable item(s) among the following.
① Uncertainty of energy prospect
② Less impact of energy cost to the whole cost of the enterprise
3
The increasing energy cost can be covered by rising the price of products
4
Little possibility of energy shortage: M & V can receive oil soon or anytime.
5
Little potential for promoting further energy conservation
⑥ Shortage of engineers: Especially pertaining to the generator (Engine) engineer(s)
7
Difficulty in obtaining good energy efficient equipment
8
Unreliable results from energy efficient equipment
9
Uncertainty about return of investment in energy conservation facilities
⑩ Difficulty in obtaining good information such as successful case of energy saving activities
⑪ Insufficient system of research and development
12
Shortage of fund for facility improvement and modification
13
Out-of-date facilities
⑭ Low consciousness of employees
⑮ Lack of personnel who can educate the employees
⑯ Shortage of measuring equipment
⑰ No time to analyze energy consumption rate
⑱ Shortage of information on government's measures
⑲ Shortage of government's subsidiary measures
⑳ Others (Please add comments):
Insufficient of information exchange between government and companies, and education
Ⅰ－A－31
表Ⅰ－３－３ Company Information for Factory Energy Conservation / Questionnaire
[Garment Industry]
Company Name June Textiles Co., Ltd (Cambodia)
Replied by
Mr. William ONG
Mr. YI Sokham
Division
General Manager
Shipping Manager
Date
12-Dec-02
1. General
1
Name of Factory
June Textiles Co., Ltd (Cambodia)
2
Address
Russian Blvd., Borei 100 Khnong, Songkat Tek Thla, Khan Russei Keo,
Phnom Penh, Cambodia Tel: 023-883-338
3
President
Factory Manager
Mr. Lee Thai Khit (Managing Director)
Energy Manager
Mr. Chung Yit FANG (Mechanic and Maintenance Dept.)
4
Type of Industry
Garment
5
Capital
250,000,000Riels (=12MUS$)
6
Annual Sales Amount
49MUS$ (2001)
7
Number of Employees
4,393 (Staff 170) at 30/11/2002
8
Number of Engineers
Experts only ~30 people
Mechanical (Heat)
Engineers
9
Organization Chart
Refer to ANNEX 5
10
Brief Company History
License: 1992, Production start: 1993 at other factory,
Old Factory: 1994 ~ , New Factory: 1998 ~ Refer to ANNEX 7
11
Meteorological
Tropical Climate
Ⅰ－A－32
1
No.
(Casual wear)
Garment Factory
Name of Production
1999
4,290
812,000
Capacity Operating Volume
Hour
(Dozens )
812000
Sales
Amount
(Dozens )
2000
942,000
Ⅰ－A－33
4,290
Annual Production
Operating Volume
Hour
(Dozens )
942,000
Sales
Amount
(Dozens )
2001
1,169,869
1,169,869
Sales
Amount
(Dozens )
(2 Shifts/day, 7.5 hours each = 15h/d)
287 * 15 = 4,305 hours/year
365 * 6/7 - 26 = 287 days/year
4,290
Annual Production
Operating Volume
Hour
(Dozens )
2002
(1,286,850) (1,286,850)
Sales
Amount
(Dozens )
MIME data (at Nov. 2002)
Total Employee = 4,041
Product = 3,100~3,800
Dozens/day
4,290
Annual Production
Operating Volume
Hour
(Dozens )
Name of Utility
20
19
18
17
16
15
14
13
12
11
10
Power plant
generation (kWh)
9 City Water (m )
3
8 Well Water (m3)
7 River Water (m3)
6 Steam (t)
4 LPG (t)
3 Diesel Oil (kL)
2 Fuel Oil (kL)
1 Electricity (kWh)
No.
1
2
3
5
6
Monthly data only
No meters, No data.
4
7
8
9
10
11
12
13
15
16
Ⅰ－A－34
14
Month / Date
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Total
Diesel Oil (kL)
LPG (t)
Compressed Air (m3)
Steam (t)
River Water (m3)
Well Water (m3)
City Water (m3)
3
4
5
6
7
8
9
Production in 2001 (Dozens)
18
20
19
(For Reference)
(IPP)
for Boilers
for Boilers
(EDC)
Lower Heat
Value
e
16
15
14
13
12
11
(kWh)
Fuel Oil (kL)
2
10
Electricity (kWh)
Name of Utility
1
No.
109,461
140,940
18
130,970
December
2001
107,233
143,520
20
137,400
January
85,760
146,670
16
141,200
February
125,457
146,700
8
130,890
March
98,354
133,770
20
155,260
May
Ⅰ－A－35
115,981
125,970
12
163,420
April
86,026
138,870
20
248,680
June
2002
93,298
142,350
18
255,510
July
83,173
138,270
18
237,710
August
95,579
138,690
22
175,570
September
75,305
140,210
14
199,870
October
94,242
139,680
7,286
16
193,160
November
1,169,869
1,675,640
87,430
202
2,169,640
Total
LPG (t)
Compressed Air (m )
Steam (t)
River Water (m3)
Well Water (m3)
City Water (m3)
4
5
6
7
8
9
20
19
18
17
16
15
14
13
12
11
(kWh)
Diesel Oil (kL)
3
10
Fuel Oil (kL)
2
3
Electricity (kWh)
Name of Utility
1
No.
(IPP)
for Boilers
for Boilers
(EDC)
Lower Heat
Consumption
Value
(kWh,kL,t,m3)
Unit Price
(*)
1999
Purchase
Amount
(*)
Unit Price
(*)
Ⅰ－A－36
(kWh,kL,t,m )
3
Consumption
2000
Purchase
Amount
(*)
(kWh,kL,t,m )
3
Consumption
*: US$ or Reils
Unit Price
(*)
2001
Purchase
Amount
(*)
69205/y
$265,165/y
Purchase
Amount
(*)
30,600
480R
$205,177/y
US$ = 3,950Riels
0.35$/m 3
(10% Tax included)
0.3426$/L
480R/kWh
Unit Price
(*)
(US$ = 3,950Riels at the end of 2002)
1,675,640
87,430
202kL
2169460kWh
(kWh,kL,t,m )
3
Consumption
2002
Items
No.
Unit
1
Receiving Voltage
2
Maximum Demand
3
4
5
Power Factor
6
h/y
7
Average Electricity
MW
8
Maximum Electricity
MW
9
MVA
10
11
1999
2000
2001
kV
2002
Note
22kV
kWh
From EDC 2001 ~
216,940
US$ or Reils
$470,432
8,760
1.5
1
kW
680 From IPP 1993 ~
5. Boiler
Boiler No.
No.
1
Type
2
Built Year
3
1
2
3
4
1993
1993
1993
(2003)
Evaporating Volume (kg/h)
4
782
500
300
Power Factor
5
Kind of Fuel
Diesel oil
Diesel oil
Fuel Consumption
6
1999
2000
2001
7
Diesel oil
Total data only
Refer to Page 34
2002
Diesel oil
No data
1999
2000
2001
2002
Ⅰ－A－37
Items
No.
1
Plant Layout:
Refer to ANNEX 7
2
Refer to ANNEX 6
3
Energy Flowchart
4
5
No drawings
6
7
No.
Kind of Product
a
(Example)
Garment
b
Garment
Kind of Energy
Unit
1999
2000
2001
2002
Production
pcs/y
300,000
320,000
320,000
350,000
Fuel Oil
kL/y
3,000
3,200
3,100
3,300
Electricity
MWh/y
3,000
3,200
3,200
3,300
Production
Dozens
Electricity (EDC)
kWh/y
2,169,460
Electricity (IPP)
kWh/y
1,675,640
kL/y
202
Diesel Oil
812,000
Casual wear
c
Production
d
Production
e
Production
Ⅰ－A－38
942,000
1,169,869
1,280,000
Nothing!
June Textiles Co., Ltd wants to reduce the energy cost, but there are no targets or policy for
reduction of energy cost.
Cost composition:
Raw materials: 65%
Energy cost:
12%
Labor cost:
10%
Maintenance:
5%
Ohters:
8%
Ⅰ－A－39
Nothing!
Nothing!
Ⅰ－A－40
① Uncertainty of energy prospect
② Less impact of energy cost to the whole cost of the enterprise
③ The increasing energy cost can be covered by rising the price of products
4
Little possibility of energy shortage
5
6
Shortage of engineers
7
8
9
⑩ Difficulty in obtaining good information such as successful case of energy saving activities
⑪ Insufficient system of research and development
12
13
⑭ Low consciousness of employees
15
Lack of personnel who can educate the employees
⑯ Shortage of measuring equipment
⑰ No time to analyze energy consumption rate
⑱ Shortage of information on government's measures
19
Shortage of government's subsidiary measures
20
Others (Please add comments):
Ⅰ－A－41
KINGDOM OF CAMBODIA
NATION RELIGION KING
*********
COUNTRY REPORT
ON
ECONOMIC AND ENERGY SITUATION IN
CAMBODIA
Ministry of Industry Mines and Energy (MIME)
Department of Energy Technique (DET)
#47 Norodom Blvd., Phnom Penh, Cambodia.
Fax : (855) 23 428 263
E-mail : [email protected]
Ⅰ−Ａ−42
ECONOMIC SITUATION
COUNTRY OVERVIEW
Cambodia is a member of the Association of Southeast Asian Nations (ASEAN). It has a total
land area of 181,035 km2 divided into 24 provinces and one municipality. According to the
1998 final census, the total population was 11,437,656, of which, 85 percent live in rural areas
with agriculture as the main source of income. In 1999, the GDP per capita is about USD 271.
The national adult literacy rate was 68.8 percent. Adult literacy rates appear to have increased
by approximately 2.5% during the past few years (Table 1).
Table 1: Adult literacy rates by sex and Status, Cambodia
Type/ Sex
Both sexes
Male
Female
Cambodia
67.8
80.0
57.7
Phnom Penh
82.2
90.9
74.8
Other Urban
72.9
84.0
63.7
Rural
65.2
77.9
54.7
Cambodia possesses unique cultural and natural assets that have considerable international
appeal. The most well known place in Cambodia is the temple city Angkor situated about 300
kilometers North of Phnom Penh in the province of Siem Reap, just a few km from Siem
Reap town. About 95 percent of the population practice Buddhism as their religion, and the
remaining 5 percent is shared by Islam and Christianity.
1. Geographic condition including land use pattern and ownership
The climate of Cambodia is tropical. Temperatures range between 20°C to 35°C throughout
the year. About one-fourth of the country’s total land area is appropriate for cultivation. The
country has four (4) geographical regions, namely: 1) Plain region, 2) Tonle Sap region, 3)
Coastal region, and 4) Plateau mountain region
2. Demographic condition including rural-urban migratation
As of March, 1998, the total population of Cambodia was 11,437,656 people. The breakdown
of population, by area and sexes is shown in Table 2.
Table 2. Population of Cambodia by Sex and Urban-Rural Distribution
Total/Urban/Rural
Total
Urban
Rural
Both Sexes
11,437,656
1,795,575
9,642,081
Males
5,511,408
878,186
4,633,222
Females
5,926,248
917,389
5,008,859
About 4/5 of the population live in the Central plains, which included the area of Mekong
River and Tonle Sap Lake. Cambodia’s population density more than doubled in 1998 to 63
inhabitants per km2 compared to 37 inhabitants per km2 in 1981. In 1998, the Plain Region
showed the highest population density about 235 inhabitants/km2, Kandal Province 300,
Capital Phnom Penh 3,744.5, Takeo 222, Prey Veng 194, Svay Rieng 161, and Kampong
Cham 164. The low population density areas were: Plateau and Mountain Region (17.5
persons/km2), Mondulkiri (2.2 persons/km2), Stung Treng (7.3 persons/mm2), Ratanakiri and
Ⅰ−Ａ−43
Preah Vihear (8.7 persons/km2), Kampong Speu (85 inhabitants/km2). The Coastal Region
has a density of of 49 inhabitants/km2, and Tonle Sap Region is 51.8 persons/km2.
3. Administration
Cambodia is a constitutional monarchy. King Norodom Sihanouk is the head of state. Prime
Minister Hun Sen is the head of the government. It has a National Assembly consisting of
122 members elected by the people from various regions. The Administration of the
Government covers 24 provinces; with the seat of political, cultural, and economic activities
located in Phnom Penh.
4. Economic and Social Situation
Since the 1980’s, Cambodia has achieved some progress in economic development. Majoirty
of the labor force is engaged in agriculture. Main industries include: rubber, fisheries, gem
mining and food processing. For the past two years, cement and cotton factories have been
re-established; while garment and tourist industries have been expanded. Private investors,
mainly from France, Malaysia, Singapore, Thailand, and South Korea have established
commercial activities in recent years that provided boost to the economy. Cambodia’s main
imports are petroleum, automobiles, motorcycles, machinery equipment and construction
materials. The gross domestic product (GDP) and GDP in percent from 1994 to 1999 are
shown in Table 3.
Table 3. Total GDP, GDP per Capita, and Growth Rate 1994-1999
1994
1995 1996 1997
1998 1999
Gross domestic product GDP (in MUS$) 2,385 2,923 3, I I3 3,033 2,868
3,182
GDP per capita (USS)
241
284
291
27-1
251 271
GDP (% increase)
4% 7.60% ° 7.0% 1.0%
I.0% 4.0%
Transportation and communications. There are six national highways linking Phnom Penh
with other areas, except the highway to Sihanouk Ville and to Kompong Cham, all other
highways are in poor conditions while some others are not passable. Public transport in the
capital and some provincial cities are few. Bicycles and motorcycles are dominantly used by
commuters. Walking and buffalo drawn casts are common sights. Railway services are
available from Phnom Penh to Battambang (at the border of Thailand) and to Sihanouk Ville.
There are several private companies engaged in telecommunication business such as: Mobitel,
SAMART Shinawatra etc. Development in this sector has greatly improved for the past two
years.
Health and Welfare. Adequate medical care is not available to the large portion of the
population. The Government is implementing a basic health care system and International
relief organisations are working with hospitals to improve the system. The sanitation is poor.
Potable water is not readily available. Life expectancy in 1995 was 53 years for females and
50 years for males.
Ⅰ−Ａ−44
Situation in the Past and at Present
1. Cambodia's power sector was severely damaged by years of war and neglect. In spite of
the Government's efforts, its institutions remain weak and power supply is unreliable, costly,
and mostly limited to urban areas. Consequently, only 12 percent of the households have
access to electricity: the lowest electrification ratio among South East Asian countries. In
most cities, deficiencies in the power supply remain due to weak management and poor
conditions of generation and distribution facilities. Further, the lack of a transmission system
prevents a more efficient use of power supply options resulting in one of the highest
electricity costs in the world.
2. After a two-year economic slowdown caused by a long political stalemate and East Asia's
financial crisis, political stability is emerging and Cambodia appears to be ready to resume a
sustained economic growth. GDP growth for 1999 is expected to reach 4% (as opposed to 1%
in 1998) and gradually increase to 6% in 2001 while Cambodia initiates a new era as a
member of the ASEAN. Important part of this growth will be associated to industrial
expansion stemming from regional trade opportunities and located mostly in the Phnom Penh
– Sihanouk ville area. Therefore, the next 4 to 5 years will be characterised by an increasing
demand for infrastructure in this area. However, while macro economic stability and growth
are expected to be achieved, progress has yet to be made in addressing fundamental fiscal
problems, including a weak domestic revenue mobilisation and inefficient public expenditure
management. The efficient development of the power sector, open to private participation,
will be critical to support Cambodia's goal for sustainable economic growth and social
development due to the following reasons (a) the reliable provision of electricity services at
lower costs is an essential condition for the growth of a competitive industry, and (b) power
investments for the period 1999-2003 are expected to reach 11% of domestic investment and
2-2.5% of GDP, hence, a power sector successful in attracting direct private investment will
minimise the use of public resources, thus reducing the pressure on fiscal management
problems and releasing public funds for social objectives.
3. Cambodia's power sector is today at a crossroads. After a period of emergency
rehabilitation and reconstruction, the sector is ready to face development objectives aimed at:
(a) improving sector efficiency and reducing electricity costs; (b) consolidating the ongoing
reform; and (c) addressing the sector's social concerns, particularly the extension of
electricity services to rural areas. It is therefore necessary to formulate and implement a
power sector strategy addressing the most salient problems of the sector:
• lack of a legal and regulatory framework, including the lack of transparency and
competition in the current process for private sector entry;
• an entrenched public-oriented approach towards the management of public
utilities;
• poor technical, commercial and financial performance of the sector;
• weak investment planning;
• lack of resources and strategy to provide electricity services to rural areas; and
• a weak human resource base.
1.3.1 Energy resources
The energy situation in Cambodia is characterized by its very low conventional energy
consumption as compared to other Asian countries. The major sources of energy for
Cambodia are biomass and imported petroleum products. Biomass energy sources account for
an overwhelming share; total woodfuel consumption in 1994 was estimated to be 1,617 ktoe
(FAO, 1997).
Ⅰ−Ａ−45
Cambodia’s sources of energy consist primarily of indigenous supplies of wood, which
together with other forms of biomass represented 83 percent of the total energy supply in
1995, while the remaining 17 percent consisted of imported petroleum products (Table 4).
Diesel oil and gasoline account for the bulk of petroleum product imports.
Table 4. Estimated Energy Supplies, 1995
Energy Source
Wood
Other Biomass & Dung
Petroleum Products
Fuel Oil
Diesel Oil
Kerosene
Kerosene Jet Fuel
Motor Gasoline
LP Gas
Total
Tones
5,621,035
113,300
419,475
50,553
183,431
25,015
10,748
145,983
3,745
Terajoules
81,505
1,645
1,8107
2,056
7,835
1,112
468
6,467
170
101,257
1000TOE
1,941
39
431
49
187
26
11
154
4
2,411
% of Total
80.5 %
1.6 %
17.9 %
2.0 %
7.7 %
1.1 %
0.5 %
6.4 %
0.2 %
100 %
Note : TOE -Tons of Oil Equivalent
Source: MIME, Energy Department
Electricity in Cambodia is generated in 22 isolated systems, mostly from diesel generators.
Total installed capacity of electricity generation in Cambodia is estimated at about 122MW,
of which 85 MW are in Phnom Penh. As a result of the small size of generation units (300KW
to 5MW unit size), dependence on oil-based generation, and large distribution losses, the unit
cost of electricity in Cambodia is among the highest in the region.
1.3.2 Demand and Supply Forecasts
Table 2 Energy Demand Scenario *, 1995-2020
Terajoules
Total
Wood
Charcoal
Other Bio.
LP Gas
Kerosene
Jet Fuel
Gasoline
Diesel
Fuel Oil
Electricity
Households
Wood
Charcoal
Kerosene
LP Gas
Diesel
Electricity
Other
Service Sector
1994
1995
94,148
77,721
1,097
1,754
103
1,323
725
6,002
4,580
65
777
81,530
77,329
935
1,046
35
80
352
1,754
918
94,583
77,721
1,097
1,642
170
1,112
468
6,089
5,393
64
827
81,395
77,329
935
879
57
176
378
1,642
989
1996
1997
1998
1999
2000
2,005
99,123 102,848 106,797 1,110,861 115,104 138,463
79,980 82,288 84,662
87,103 89,616 103,552
1,121
1,143
1,167
1,189
1,213
1,367
1,633
1,625
1,616
1,608
1,600
1,559
212
257
310
362
421
729
1,420
1,481
1,549
1,607
1,678
2,081
725
761
799
389
881
1,125
7,301
8,073
8,939
9,836 10,766 15,288
5,751
6,149
6,576
7,031
7,521 10,539
73
79
86
93
102
158
907
991
1,093
1,191
1,308
2,066
83,830 86,224 88,685
91,215 93,819 108,240
79,536 81,804 84,134
86,527 88,985 102,546
957
979
1,002
1,026
1,050
1,179
1,117
1,155
1,190
1,226
1,263
1,468
88
120
153
187
222
416
84
86
88
91
93
106
415
45
501
551
607
967
1,633
1,625
1,616
1,608
1,600
1,559
1,057
1,129
1,231
1,310
1,420
2,104
Ⅰ−Ａ−46
2,010 199505% / Yr
152,244
3.9%
106,344
2.9%
1,357
2.2%
1,351
-0.5%
1,050 15.7%
2,430
6.5%
1,435
9.2%
20,284
9.6%
14,783
6.9%
249
9.4%
2,962
9.6%
110,608
2.9%
104,730
2.9%
1,135
2.3%
1,512
5.3%
546 22.1%
107
-4.9%
1,229
9.8%
1,351
-0.5%
3,189
7.8%
Wood
Charcoal
Kerosene
LP Gas
Diesel
Electricity
Industry
Wood
Charcoal
Diesel Oil
Fuel Oil
Electricity
Transport
Gasoline
Diesel
Jet Fuel
Fuel Oil
23
23
149
149
278
233
69
113
33
80
367
391
405
405
307
370
13
13
22
22
63
63
58
57
11,174 11,674
6,002 6,089
4,445 5,116
725
468
2
1
18
149
303
124
36
426
465
425
15
25
72
66
13,633
7,031
5,606
725
1
16
147
325
138
39
464
512
468
17
28
78
72
14,832
8,073
5,997
761
1
13
146
359
158
43
512
564
515
18
30
85
80
16,154
8,939
6,414
799
1
11
143
381
175
46
553
619
565
20
33
92
87
17,537
9,836
6,861
839
1
10
142
415
199
50
605
681
622
22
37
101
96
18,988
10,765
7,341
881
1
5
152
614
313
75
945
1,096
1,001
36
59
157
154
26,712
15,288
10,299
1,125
1
3
165
918
504
114
1,486
1,764
1,611
58
95
248
247
36,188
20,284
14,468
1,435
1
*Demand by final consumers, not including fuel for electricity generation or wood for charcoal
Cambodia’s energy supplies forecasting 1990-2010 has not yet been estimated
ELECTRICITY SECTOR
A. Ministry of Industry, Mines and Energy (MIME)
MIME is responsible for policy and planning of the electricity sector and also for
management of supplies in 19 provinces of Cambodia.
One of MIME's important activities is its leading role in Renewable Energy activities
throughout the rural areas. This includes solar, biomass, biogas, and hydropower. The
potential for wind energy in Cambodia has not yet been assessed.
B. Electricity Authority of Cambodia (EAC)
The ElectricityAuthority of Cambodia was established by virtue of the new Electricity Law.
The EAC will be responsible for regulating the provision of electric power services. The
responsibilities of EAC include:
• Licensing of companies for generation, transmission, distribution and retailing of
electricity, including consolidated and subcontractor arrangements
• Review and approval of tariffs
• Monitoring of investments and power acquisitions by license,
• Development and monitoring of performance, technical, safety and environmental
related standards
• Certification and inspection of metering
• Establishment of accounting standards
• Enforcement of electricity law
C. Electricity du Cambodge ( EDC)
EDC is a public sector utility that has the non-exclusive responsibility for generation,
transmission, distribution and retail of electricity throughout Cambodia. It presently provides
Ⅰ−Ａ−47
0.2%
10.2%
10.7%
-0.6%
9.2%
10.5%
10.5%
10.5%
10.5%
9.5%
10.4%
8.6%
9.6%
7.2%
9.2%
0.0%
the supplies to the nation's capital Phnom Penh and through grid extension to Kandal province
and also the provincial cities of Sihanouk ville, Steam Reap and Kompong Cham. EDC is also
expected to assume responsibility, for the fist three to five years, of the network rehabilitation
and expansion being funded by the ADB in seven main provincial towns
Phnom Penh has the largest power system in the country. It serves about 80,000 customers
with a peak demand of 85 MW. EDC’s key electricity data as of 31 December 1999 include:
• Total installed generation capacity
• Maximum generation output
• Energy Generation
• Energy Sales (excludes own usage)
• System Losses
• 115 kV Network
• 22 kV Network
115 MW
97MW
387 GWh
284 GWh
24.05 %
23 circuit-km
341.04 circuit-km
D. Demand/Supply Forecasts 1999-2016 and Key issues
Over the past several years, the demand for electricity has been growing along with the
economic growth. The demand growth has averaged 30-40 MW per year. The production of
electricity is not adequate to meet demand. The present role of EDC is to improve the
efficiency of generation, transmission and distribution on electric power in Cambodia.
Electricity Demand
Table 4. Expected Power Generation output for Cambodia (MW)-Base Case
Year
Banteay Meanchey
Battambang
Kampong Cham
Kampong Chhnang
Kampong Speu
Kampong Thom
Kampot
Kandal
Koh Kong
Kratie
Mondul Kiri
Phnom Penh
Preach Vihear
Prey Veng
Pursat
Ratanak Kiri
Siem Reap
Sihanouk Ville
Stung Treng
Svay Reing
Takeo
Total
1998
4.0
3.5
4.9
1.1
1.0
1.5
2.7
2.2
0.7
1.9
0.1
60
0.3
1.7
1.3
0.9
3.0
2.9
0.2
1.0
1.5
97
2000
5.9
5.7
7.8
1.6
2.0
2.4
4.8
3.9
0.9
3.2
0.2
93
0.5
3.0
2.3
1.1
4.2
3.4
0.5
1.6
2.4
150
2002
8.0
8.6
10.5
2.2
2.9
3.4
8.1
5.5
1.2
4.4
0.3
131
0.7
4.4
3.2
1.3
5.6
4.1
0.7
2.2
3.4
212
2004
10.0
12.0
13.0
2.8
3.8
4.5
10.1
6.7
1.4
5.7
0.4
170
1.0
5.5
4.2
1.5
7.1
4.8
0.9
2.8
4.2
273
2006
12.0
15.0
15.2
3.4
4.7
5.3
13.9
7.9
1.7
6.8
0.5
207
1.1
60.6
5.0
1.7
8.4
5.5
1.1
3.2
4.9
331
Source: Government of Cambodia, MIME Nov. 1998
Ⅰ−Ａ−48
2008
14.5
18.5
17.9
4.0
5.9
6.4
16.3
9.2
2.0
8.0
0.6
256
1.4
7.8
5.9
1.9
10.0
6.3
1.3
3.9
5.8
404
2010
17.3
22.4
20.5
4.7
7.2
7.5
18.9
10.6
2.3
9.4
0.7
304
1.6
9.0
6.9
2.2
11.5
7.3
1.5
4.4
6.7
477
2012
20
27
23
5
9
9
25
12
3
11
1
356
2
10
8
2
13
8
2
5
8
558
2014
24
31
26
6
12
10
28
13
3
12
1
418
2
11
9
3
15
10
2
6
8
651
2016
26
33
29
7
16
11
33
15
4
14
1
484
2
13
11
3
17
11
2
6
9
746
RENEWABLE ENERGY SECTOR
a) Institutional Setting
In 1995, a working group called "Solar Energy Application (SFA)" was formed by Technical
Energy Department of Ministry of Industry Mines and Energy. SEA is responsible in
renewable energy and performs the following activities:
-
cooperation and coordination with Ministries, agencies concerning and donor,
data collection basically for study,
research, setting up the solar energy system I pilot project), training local people.
promoting and disseminating of this field,
report to MIME the results of the study.
b) Present Use, Potential, and Direction for Development
Solar Energy
Cambodia’s tropical climate is favorable for the utilisation of solar energy. This is reflected in
the annual mean temperature in the low-lying plain, which is about 26ºC. Measurements
during the periods of 1981-1988 at Phnom Penh indicate that the average sunshine duration
varied between 6.1 and 9.7 hours per day in August and December respectively.
The total installed PV capacity was about 204,586 Wp in Cambodia. PV installations include
private rural houses, schools, health center, orphans, pagodas telecommunication, etc.
Recently, the New Energy and Industrial Technology Development Organization (NEDO),
has installed PV battery charging system in Phnom Chino and PV water pumping in school at
Kompong Chnaing province. The projects are expected to: increase the economic condition of
rural people, increase the knowledge of the people, and to transfer information and technology.
Hydropower
Cambodia is the one of the South-East Asian countries that is rich in water resources. It has
the second largest hydropower potential in the lower Mekong Basin. According to the latest
preliminary study, the total hydropower potential of the country is estimated at 10,000 MW,
of which, 50 percent is in the Mekong, 40 percent in its tributaries and the remaining 10
percent in the south-western coastal area outside the Mekong river basin.
Cambodia's demand is projected at 175 MW in 2000, 380 MW in 2010 and 760 MW in 2020.
Due to improvement in economy, the increase in power demand cannot be met by existing
power supply capacities. The most urgent action for the utilities are to rehabilitate and
upgrade existing power plants. This is considered critical as a continued shortage in the
electricity supply will seriously restrain the ongoing reconstruction and socio-economic
development of the country.
The need for Cambodia will be to use Cambodia's Hydropower potential in order to meet
future electricity demand and to reduce the dependence upon imported fuel and to exchange
of hydropower with neighboring countries.
Before the civil war, the Kirirom I Hydropower station was running with an installed capacity
of 10MW, and energy was delivered to Phnom Penh through a 110 kV transmission line over
a distance of 120Km. This Hydropower Plant was completed in 1968 as the first hydropower
station in Cambodia, but it was completely destroyed during the war after only 13 months of
Ⅰ−Ａ−49
operation. However the facilities have been started to restore by Austrian and Swedish Aid
projects. The Prek Thnot project with an installed capacity of 18MW was implemented near
the Kirirom I Hydropower station, but the construction was interrupted in 1970 due to the war
In 1992 one small Hydropower Station at Present in Cambodia, and all of the operating
generator; now are diesel and okil-fired engines depending on imported oil
Wind Energy
At present, wind energy has not been used for power generation. Wind resource, especially in
coastal and mountainous regions, is about l0 m/s. Measurements during 1981-1990 at Phnom
Penh indicate that the average wind velocity varied between 4.8 and l4.8 m/s in January and
July respectively. There are some installations of wind energy for water pumping
implemented by an NGO, (Christian Outreach) for irrigation in Prey Veng Province.
Biomass
As in almost all Asian countries, biomass energy plays a major role in satisfying the rural
energy requirements of Cambodia. According to FAO estimate, wood fuel consumption in
1994 was 1,618 ktoe, and accounted for 84% of the total energy consumption in the country.
The total available wood fuels during the same year was 24.5 million toe. In addition, an
estimated amount of 167 ktoe of agro-industrial processing residues was also available as fuel
in 1994 (FAO 1997). Due to the lack of modern technology, the development of biomass
system still very low. In Cambodia, biomass systems generally use agricultural wastes for
cooking and small handicrafts in rural areas.
Biomass is also used in the industrial sector for copra drying and steam generation. However,
no reliable estimates of the amount of biomass energy consumption for these purposes are
available.
Biogas
Biogas system in Cambodia used animal wastes for energy. The systems were implemented
by Christian Outreach, Food Agriculture Organization, and Padex. In some provinces. Prey
Veng, Kandal, Kompong Speu, Svay Rieng, Ta Keo, Kom Pot, and Siem Riep, there seems to
be considerable potential for biogas development. The energy potential of biogas from
recoverable animal wastes in the country has been estimated to be about 228 ktoe/year
(Bhattacharya et al., 1997).
REFERENCES :
-
-
-
General Population Census of Cambodia 1998
National Institute of Statistics, Ministry of Planning, Phnom Penh.
Funded by : United Nations Population Fund, July 1999
Report on the Cambodia Social-Economic Survey 1999
National Institute of Statistics, Ministry of Planning, Phnom Penh
Sponsored by : United Nations development Programme, Swedish International
Development Cooperation Agency and Executed by the World Bank
Report on Energy Policy and Conservation in Cambodia
Ministry of Industry Mines and Energy (MIME), Technical Energy Department
Ⅰ−Ａ−50
Sponsored by : New Energy and Industrial Technology Development Organization
(NEDO), Japan
Ⅰ−Ａ−51
II.
Iron and Steel Industry
Participants for audit and survey of energy conservation in major industries of ASEAN
countries (Staff members from DOE, Iron and steel companies, ACE and ECCJ)
At a meeting room of company A, Manila, Philippines (Feb. 11, 2003)
II.
Iron and Steel Industry
1.
Project Summary
This project was intended to contribute to energy conservation, environmental
protection, and persistent economic development of ASEAN countries showing
remarkable economic growth and established as a part of the Infrastructure
Improvement for Rationalization of International Energy Use.
With ACE (ASEAN Center for Energy) as the core organization, this project attempts to
promote energy conservation relating to major industries under cooperation of ASEAN
countries. As the country and industry to be surveyed in this fiscal year, Philippines and
its iron and steel industry were chosen. Then, an audit plan was prepared based on the
discussion with responsible persons in this country. For four days on December 16
through 19, 2002 and February 10 through 14, 2003, audit was implemented at the sites
of two companies in the iron and steel industry with the presence of responsible persons
of the Department of Energy (DOE) in Philippines.
The survey report including the Philippines’ political and economic status is discribed
below. However, we promised PSA (Philippine Steel-makers Association) and these
companies according to their request that the company names would not be disclosed.
Therefore, these companies are represented by e.g. “Company A”, etc.
1.1
Subjects of Study and Organizations Involved
(1)
Country and companies surveyed
Country
: The Republic of Philippines
Companies :
Company A (electric arc furnace factory) : Visit in the first visit and audit
survey in the second visit
implemented
Company C (electric arc furnace
: Visit in the first visit
factory/rolling mill)
Company D (electric arc furnace factory) : Visit in the first visit
Company B (rolling mill)
: Visit and audit survey in the
second visit
Although four factories were visited, Company A with electric arc furnace
(hereinafter reffered to as “EAF”) factory (totally 1.5 days) and Company B with
rolling mill (1.5 days) were actually audited and surveyed.
II-1
(2)
Organization
1) Philippines
a. DOE (Department of Energy):
Ms. Teresita M. BORRA
Ms. Lilian C. FERNANDEZ
Mr. Jesus C. AUUNCIACION
Mr. Artemio P. HABITAN
Mr. Michel ESTRADA
Mr. Marlon R. N. DOMINGO
Mr. Antonio BASCO
Mr. Simon LEONOR
b. BOI (Board of Investments):
Mr. Ramon L. ROSALES
Ms. Amelia P. CABALLERO
Director EUMA
Division Chief
Chief Science Research Specialist,
Energy Efficiency Division
Supervisor,
Science
Research,
Monitoring & Evaluation Section,
Monitoring
Energy Audit
Director, Industry Planning Dept. 3
Officer of Construction Materials,
Metal-works & Machinery Division
c. PSA (Philippine Steel-makers Association) :
Mr. Antonio P. ARROBIO
Secretary of the Philippine Steel-makers
Association (Vice President of Cathay
Pacific Steel Co.)
d.
e.
f.
g.
h.
Company A (EAF factory)
:
Company C (EAF/rolling mill factory)
:
Company D (EAF factory)
:
Company B (roll factory)
:
Other companies participated in the workshop :
6 persons
3 persons
1 person
4 persons
6 persons from 2
companies
2) ACE:
Mr. Christopher ZAMORA
3) ECCJ:
Hiroshi Shibuya
Ichiro Matsuura
Hideyuki Tanaka
Department Manager of International Engineering
Department
Technical Expert of International Engineering
Department
Technical Expert of International Engineering
Department
II-2
1.2
Political and Economic Conditions of Philippines
(1)
National indicators
Country name
Area
Population
Capital
Language
Religions
(2)
:
:
:
:
:
:
The Republic of the Philippines
294,554 km2
76,499 million (census value as of May 1, 2000)
Manila (population: 1.58 million)
Many languages including Filipino, English, and Ilocano
Catholicism (84%), Philippines Independent Church/
Protestant (11%), and Islam (5%)
Basic economic indicators
Table II-1-1 shows the basic economic data of Philippines.
Table II-1-1
Basic Economic Data of Philippines
1998
GNP (100 million US$)
GNP per capita (US$)
Economic growth rate (%)
Inflation rate (%)
Unemployment rate (%)
Total trade value
Exports
(100 million US$) Imports
685
912
-0.6
9.8
10.0
295.0
296.6
1999
802
1045
3.4
6.7
9.8
350.4
307.4
2000
790
1007
4.0
4.4
11.2
380.8
313.9
2001
757
945
3.4
6.0
11.1
321.5
295.5
Substantial GDP growth rate : 3.4% (2001)
Nominal GDP total amount : 3,642,820 million pesos (2001)
71,438,068,586 US$ (1 US$ = 50.9927 peso on an annual average)
Current balance (on an international balance basis) : 4,504 million US$ (2001)
Trade balance (on an international balance basis) : 2,598 million US$ (2001)
Foreign currency reserves : 134,42.6 million US$ (2001)
Foreign liabilities balance : 520,60 million US$ (2001)
Exchange rate (term average) vs. US$ rate : 50.9927 (2001)
Exchange rate (term-end value) vs. US$ rate : 51.404 (2001)
Exports to Japan
: 5,055 million US$ (2001) FOB
Imports from Japan : 6,097 million US$ (2001) FOB
II-3
(3)
Political system
System of government : Constitutional republic system
Head of state
: Gloria Macapagal Arroyo
Assumption of office : Promoted to President from Vice-president on January
20, 2001
Parliament
: Bicameral
Outline of parliament (number of seats, date of founding, term of office):
Regular members of upper house 24 (national constituency), lower house 262
(by both proportional representation and single-member constituencies);
Term of office: upper house 6 year (half the seats being reelected every 3
years); lower house 3 years
Major ministries
: Department of Finance, Department of National
Defense, Department of Trade and Industry,
Department of Justice, Department of Tourism,
Department of National Economic Development
Authority, Department of Transportation and
Communications, and Department of Budget and
Management
(4)
Political developments
• May 1998: Josef Estrada is elected to be a president of the Philippines,
largely thanks to the support of the population’s lower income brackets
• October 2000: President Estrada suffers a steep fall in popularity as a result
of widespread allegations of illegal gambling, misappropriation of public
funds, and so on. On October 12, Vice-president Gloria Macapagal Arroyo
resigns her cabinet post, and on November 2 Secretary of Trade and Industry
Roxas also resigns. Messers chairmen and many members of both houses of
Congress leave the ruling coalition, known as LAMP, and the situation moves
toward impeachment of the President.
• January 16, 2001: The refusal – at the impeachment hearings – to disclose
important evidence regarding accusations of illegal amassing of personal
wealth by the president, leads to mounting demonstrations by the general
public. President Estrada successively loses the support of his cabinet
members, and Ms. Arroyo is proclaimed president.
• May 1, 2001: Police clash with a huge crowd of supporters of former
president Estrada, protesting against plans for his arrest. On the same day,
President Arroyo declares a state of emergency, allowing the arrest of the
former president without a court warrant.
II-4
• In the interim elections on May 14, 2001, 8 out of 13 seats up for re-election
in the upper house are captured by the ruling party coalition led by President
Arroyo. Together with those seats that the coalition held that were not up for
re-election, this gives the coalition a majority in the upper chamber.
• August 7, 2001: A cease fire is agreed between the government and the Moro
Islamic Liberation Front (MILF) following President Arroyo’s rejection of
former president Estrada’s hard-line stance against the MILF.
• November 19, 2001: An armed group supporting Misuari, honorary chairman
of the MILF and governor of the Mindanao Islamic Autonomous Region
(MRMM) attacks an army post on the island of Jolo in Sulu Province. Mr.
Misuari requests postponement of the gubernatorial election set for
November 26, and the suspicion is widespread that the attack was made for
the purpose of putting off the election. On November 24, Mr. Misuari is
arrested in Malaysia on suspicion of illegal entry: he is subsequently returned
to the Philippines.
• November 26, 2001: Husin wins the MNLF deputy chairman The MRMM
election. The Arroyo administration officially recognizes him as the new
governor.
• July 22, 2002: President Arroyo makes the second policy speech after the
assumption of office and announces the statuses of achieving poverty
eradication, modernization of the agricultural sector, peace preservation, and
macro economy development as the pledges made in the preceding year and
indicates the goal of the future policies. She focuses on employment securing
and investment invitation – and among them – shows a positive stance for
solution of labor problems for investment invitation.
(5)
Economic trend
Under the administration of President Ramos (1992-1998), a high growth was
achieved through introduction of foreign capitals and under the control of
exports by promoting economic structure reforms including reform of the
government’s finances and deregulation. The substantial GDP growth rate rose
steeply from a mere 0.3% in 1993 to 5.7% in 1996 and 5.2% in 1997.
The Philippine peso, too, was affected by the East Asian currency crisis, which
was sparked by a steep fall in the exchange rate of the Thai currency, the baht, in
July 1997. On top of a rising inflation rate and the government’s deteriorating
financial balance, bad weather caused by the El Ninho phenomenon led to poor
harvests, and as a result, the Philippines in 1998 recorded its first negative GDP
growth figure since 1991, at minus 0.6%.
In 1999, the output of farm crops such as rice and corn recovered thanks to
improved weather, while the manufacturing sector also held firm. Therefore, the
GDP growth rate recovered to 3.4% and the GNP growth rate to 3.7% (0.4% rise
II-5
in 1998) and the trade balance registered its first surplus in 11 years, at US$4300
million.
In 2000, although the farming sector experienced a slowdown, manufacturing
industry enjoyed sharp growth, and, supported by strong consumer demand and
vigorous exports, the GDP growth rate showed a 4.0% increase, the GNP growth
rate showed a 4.5% increase, and the trade surplus was US$6700 million.
In 2001, the GDP growth rate maintained a 3.4% increase, topping the
government’s target of 3.3%, supported by firm faming and service sectors and
personal consumption in good condition, although exports and the mining and
manufacturing industries declined as a result of worldwide stagnation.
By the third quarter in 2002, the substantial GDP growth rate was 4.1 (3.0% in
the preceding year) and the substantial GNP growth rate was 4.2% (3.6% in the
preceding year). In the fourth quarter, the government’s goal for GDP 4.0% and
GNP 4.5% may be achieved because a demand increase by remittance of a large
amount by workers in overseas in Christmas season is expected.
(6)
Trades and investments between Philippines and Japan
Although Japan is a second large trade partner for Philippines, following the
United States, Philippines shows a deficit constantly. In past years, the major
items of export to Japan were primary products such as fishery products and
banana. Recently, processed products such as semiconductors and wire harnesses
have increased. Most items imported from Japan are industrial products, among
which electronic/electrical parts and automobile parts rank higher. The trade
amount between Japan and Philippines in 2001 (exports + imports) is simply
2.1% from the standpoint of Japan but it is 16.7% from the standpoint of
Philippines (the United States: 24%).
Japan is one of the major countries investing to Philippines and many
investments are being made to the manufacturing sector in the economic special
district. For the types of industry, major investments are made to electronics,
followed by transporting components and processed metal items.
II-6
1.3
Energy Status in Philippines
The following description is based on “Philippine Energy Plan 2002-2011” announced
in November 2001.
(1)
Primary energy consumption
Primary energy consumption in Philippines had increased 3.5% on an annual
average between 1995 and 2000. Since the GDP growth rate on an annual
average in this period was 3.5%, the energy elasticity rate to GDP was 1.0. In
2000, energy consumption was 249.5 million barrels of fuel oil equivalent.
Although the percentage of petroleum in total primary energy consumption
reduces year by year, it is still high (45.5%) and almost 100% of petroleum
depends on imports. For energy sources produced domestically, the recycle type
(bagasse, agricultural waste, timber, etc.) is 30.1%, hydraulic power is 5.1%, and
geothermal energy is 8.2%.
Table II-1-2 Transition of Primary Energy Consumption (Assuming a Big Volume
Consumption of Domestic Energy)
Unit: Barrels of fuel oil equivalent (MMBFOE)
1995 (actual)
Demand
Domestic
production
Composition %
2000 (actual)
Demand
Composition %
2006 (forecast)
Demand
Composition %
2011 (forecast)
Demand
Composition %
92.2
44.0
111.9
44.9
191.5
58.2
254.2
55.7
0.03
0.02
0.3
0.1
13.1
4.0
7.2
1.6
Gas
0.0
0.0
0.04
0.01
31.0
9.4
57.5
12.6
Coal
6.1
2.9
4.4
1.8
7.4
2.2
14.4
3.2
Hydraulic
power
10.7
5.1
12.3
5.1
20.1
6.1
30.1
6.6
Geothermal
10.6
5.0
19.7
8.2
30.9
9.4
42.1
9.2
Recycle type
64.8
30.9
75.1
30.1
89.1
27.1
102.8
22.6
117.5
56.0
137.6
55.1
137.6
41.8
200.2
43.9
Petroleum
Imports
Petroleum
114.0
54.3
113.3
45.4
117.6
35.7
175.4
38.5
Coal
3.5
1.7
24.3
9.7
20.0
6.1
24.8
5.4
Others
0.0
0.0
0.0
0.0
0.0
0.0
1.7
0.4
209.7
100.0
249.5
100.0
329.1
100.0
456.1
100.0
Total
Source: PEP 2002-2011
II-7
(2)
Electricity
For electricity generated in Philippines, 45.3 TWh was produced in 2000 and
exceeded 41.4 TWh in the preceding year by 9.3%. For the demand by
application in 2000, 36.1% was for the industrial sector, 35.3% was for the
residential sector, 26.0% was for the commercial sector, and 2.6% was for the
transportation and other sectors. For the electricity demand in 10 years from
2001 to 2011 based on the estimated economic growth rate of 6% on an annual
average, an increase of 9.3% on an annual average is expected and 45.1 TWh in
2001 will increase to 110.2 TWh in 2011.
Table II-1-3
Actual/Forecast Transition of Electricity Generation
Unit: TWh
2000 (actual)
2001 (forecast)
2011 (forecast)
Electricity Compogeneration sition %
Luzon Grid
35.0
Visaya Grid
4.2
9.2
4.7
10.4
Mindanao Grid
6.1
13.6
5.4
12.0
45.3
100.0
45.1
100.0
110.2
Total in Philippines
77.2
35.0
77.6
82.3
Growth rate on
an annual
average between
2001 and 2011%
74.7
8.9
12.6
11.4
10.4
15.3
13.9
11.0
100.0
9.3
Source: PEP 2002-2011
The system of electricity industry in Philippines is characterized by the fact that
the system is divided by clear sections that are electricity generating/transmitting
companies and electricity distributing companies. National Power Corporation
(NPC) and Manila Electric Company (MERALCO), both of which are national
corporations, monopolize the electricity market. NPC performs consistent
operation of electricity generation and transmission. MERALCO distributes
electricity to Manila and adjacent areas and electricity distribution to other areas
is sold wholesale to local electrification cooperatives and NPC also sells
electricity to major industrial demands. However, since the electricity enterprise
is monopolized, the NPC’s business is not streamlined and its debt increases.
Additionally, the electricity charge increases due to electricity distribution losses,
etc., so the electricity charge in Philippines is second higher, following Japan in
Asia. As an action plan, “Electric Power Industry Reform Act (Republic Act
No.9136)” containing the action of selling NPC and putting it under private
management as a core was established in the congress in June 2001 to make the
electricity sector more efficient through entry of private capitals and introduction
of the principle of competition. The Electric Power Industry Reform Act also
expresses that local electrification should be proceeded with. For rural villages,
villages of approximately 25% still cannot access the electricity transmission
network. The government’s plan aims at achieving electrification of 95%
II-8
barangays (minimum administrative units) by 2004 and full electrification by
2006.
Because of the geographical features of Philippines as a country of islands, the
NPC’s electricity transmission network consists of three grids; Luzon, Visaya,
and Mindanao. Electricity is distributed by MERALCO in Manila, by electricity
distribution companies such as VECO in Visaya, and by approximately 120 local
electrification cooperatives in rural areas. The largest electricity distribution
company is MERALCO. Promotion of local electrification is under control of
National Electrification Administration (NEA), which is responsible for
constructing local electricity distribution equipment, organizing and supervising
local electrification cooperatives as electricity distribution organizations, and
implementing staff training, etc. but does not distribute electricity directly. For
electricity generation equipment (NPC) by grid, the Luzon grid uses thermal
power, the Visaya grid uses geothermal power, and the Mindanao grid uses
hydraulic power as major sources.
Table II-1-4 Electricity Source Constitution of Philippine (NPC) Electricity
Generation by Grid (2000)
Unit: TWh
Luzon Grid
Visaya Grid
Mindanao Grid
Total
Electricity Constitu- Electricity Constitu- Electricity Constitu- Electricity Constitugeneration tion %
generation tion %
generation tion %
generation tion %
Thermal
power
20.29
65.5
0.64
17.4
0.49
9.0
21.90
54.0
4.97
16.0
0.36
9.8
0.49
9.0
6.30
15.5
15.32
49.5
0.28
7.6
0.00
0.0
15.60
38.5
Hydraulic
power
3.16
10.2
0.01
0.3
4.19
76.7
7.36
18.1
Geothermal
power
7.51
24.3
3.02
82.3
0.78
14.3
11.31
27.9
30.96
100.0
3.67
100.0
5.46
100.0
40.58
100.0
Petroleum
Coal
Total
Source:
(3)
NPC 2000 Annual Report
Energy price
For the NPC’s electrical charge by area, the energy price is approximately 2
peso/kWh in local areas (5.6 yen/kWh if 1 peso = 2.8 yen) and approximately 3
peso/kWh in urban areas (8.4 yen/kWh). Therefore, the price in urban areas is
higher.
II-9
Table II-1-5
Luzon Grid
Visaya Grid
Mindanao Grid
Philippines
NPC’s Electricity Charge
Peso/kWh
1999
2000
2.84
3.34
2.52
3.23
1.67
1.93
2.65
3.12
Source: 2000 Annual Report “National Power Corporation (NPC)”
The fuel prices (according to the data from the Energy Industry Administration
Bureau of the Department of Energy; as of September 2000) is as follows:
Gasoline (lead-free) 16.85 to 17.36 peso/L
Diesel oil
13.04
Kerosene
12.59
(4)
Government offices responsible for energy conservation and promoting
organizations
1) Department of Energy (DOE)
This department aims at streamlining, integration, and adjustment of various
programs of the government in the field of energy resources in Philippines,
by conducting total and integrated mining, production, management,
development, preservation, recycling, efficient utilization, continuous,
adequate, and economical reservation of supply; and considerations to the
environment.
Since DOE was established in 1992, it developed the Philippine Energy
Plan (PEP) every year and announced the future prospect and plan on the
energy supply and demand status, prospect, and governmental policy in
coming 10 years. As auxiliary organizations relating to energy, Philippine
National Oil Company (PNOC), National Power Corporation (NPC), and
National Electrification Administration (NEA) are under supervision of this
department.
2) Energy Regulatory Commission (ERC)
The former name was Energy Regulatory Board, which was renamed to
Energy Regulatory Commission (ERC) in June 2001. This commission is
responsible for establishing standards for the energy demand side
consumption efficiency improvement plan (DSM Program) in connection
with the energy conservation policy. This commission has jurisdiction over
the DSM framework program.
II-10
3) National Power Corporation (NPC)
This national organization is under supervision of DOE and it is responsible
for consistent operation of electricity generation and transmission
throughout Philippine and electricity distribution to major industrial
demands.
4) Manila Electric Company (MERALCO)
for electricity distribution to Manila and adjacent areas.
5) National Electrification Administration (NEA)
for electricity distribution to rural areas and electrification of farming
villages.
6) Philippine National Oil Company (PNOC)
This company is responsible as the leader of R&D for energy in Philippines.
II-11
1.4
Iron and Steel Industry in Philippines
Description below is based on the material by Philippines BOI (Board of investments).
(1)
Supply and demand of iron and steel in Philippines
The maximum iron and steel consumption in the past in Philippines was
approximately 4 million tons in 1960. Then, the consumption has decreased. In
2000, the demand of iron and steel was 3.136 million tons, which was 5.2%
smaller than that in the preceding year. This was caused by reduction of public
enterprises due to budget shortage. In 2001, the level in 1999 was restored. In
2002, the demand will increase by 3.2% to 6.5% compared with that in 2001.
(See Tables II-1-6 and II-1-7.)
Facilities in National Steel Co. (NASCO) that had supplied more than 50% of
steel sheets, etc. was shut down in November 1999. Now, all steel sheets, etc. are
imported.
Table II-1-6
Demand of Iron and Steel in Philippines
(Unit: 1,000 tons)
1999
Year
Flat
Products
Local Prod’n
Long
Products
Total Steel
2000
2001
Sem 1
2001
Sem 1
2002
2002 Forecast
Low
High
144
--
--
--
--
--
--
Imports
1,443
1,386
1,483
734
815
1,550
1,600
1,587
1,386
1,483
734
815
1,550
1,600
Local Prod’n
1,286
1,350
1,386
711
752
1,450
1,485
434
400
474
226
256
450
475
1,720
1,750
1,860
937
1,008
1,900
1,960
Local Prod’n
1,430
1,350
1,386
711
752
1,450
1,485
Imports
1,877
1,786
1,957
962
1,071
2,000
2,075
3,307
3,136
3,343
1,671
1823
3,450
3,560
Imports
Table II-1-7
Kind of Products
Hot rolling products
Demand of Iron and Steel in Philippines (by Kind of Product)
(Unit: ton)
Sem 1, 2001
Sem 1, 2002
Increase/Decrease
366,200
420,000
+14.7%
Cold rolling products
177,200
218,200
+23.1%
Coating products
152,200
165,000
+8.4%
Tin plate
92,400
110,000
+19.0%
Zinc coated
31,500
47,100
+49.5%
Pipe & tube
23,000
11,700
- 49.1%
Billet
590,000
635,800
+7.8%
Long finish
224,000
265,600
+18.6%
II-12
The import in the first half of 2002 reached 59.3% of the total import in 2001.
According to the tables shown above, the volume of imported billets is large and
approximately 80% of material for producing bar steel in Philippines relies on
import.
(2)
Development and problems of iron and steel industry
Iron and steel manufacturers, foundries, and scrap traders petitioned the
government to inhibit or at least regulate scrap export through the policy
statement submitted to the trade industry committee in the congress, to save the
iron and steel manufacturers and foundries that were facing a crisis. Since 80%
of their raw materials are scrap and iron and steel products, they mentioned that
the domestic iron and steel industry would surely be collapsed unless scrap
export is inhibited or regulated.
This industry consists of 250 companies, to which capitals of more than 10
billion peso and more than 500 thousand employees are committed, directly or
indirectly. This industry pays taxes of hundreds of million pesos to the
government, has economic connections with other industries and saves foreign
currencies that are important to the country. In Philippines, 13 melting
companies using EAFs in the past are reduced to 5 companies and the others
changed to single rolling mills.
1) Billet production sector
For billet production, the EAF – continuous casting system is employed.
Types of steel are plain carbon steel (structural steel), intermedium-class
steel, and high-strength steel.
Billet production in 2001 was 420,000 tons, which was 36% of the
manufacturing capacity (1,160,000 tons).
Two companies with a capacity of 300,000 tons/year are not currently
operating.
2) Rolling sector
Rolling mills produce reinforcing steel bars for civil engineering and
construction, wire rods, and shapes and sections steel. Reinforcing steel bars
are categorized into two types; structural steel and intermediate/highstrength steel. There are about 25 manufacturers of structural steel. The
number of manufactures of intermediate steel/high-strength steel is 4. For
wire rods, inexpensive products are mainly imported from Russia and
Ukraine. Mills in this sector are changing to produce reinforcing steel bars.
Shapes and sections steel is produced by mainly two companies. The
capacity of overall mills is approximately 3.6 million t/y.
II-13
3) Company management structure
These companies are mostly family corporations. However, three companies
are stockholding companies to which foreign countries are committed.
4) Technology
- Field of melting
Most companies performing melting have new excellent equipment with
high-productivity for which auxiliary equipment and productivity have
been enhanced and processes have been improved.
The cost of production with the equipment is fully competitive against
foreign countries, thanks to convenience of transportation, minimum
depreciation, and inexpensive personnel expenses.
- Field of rolling
Rolling mills are divided into three types; the continuous type, the semicontinuous type, and the non-continuous type, namely cross country. The
continuous type has a rolling stand with full tandem arrangement and has
a heating furnace with high-speed operation, computer control, and high
fuel efficiency. There are 3 companies, each of which has a capacity of at
least 300 thousand t/y.
The semi-continuous type has a reverse type roughing mill stand or a
loop type with semi-tandem arrangement. There are 12 companies and
the average capacity is 150 thousand t/y.
The non-continuous type mills has a minimum scale that meets at least
the economic requirements and it is operating with high fuel consumption
and depending man-hours mostly. Most mills belong to this category.
(3)
Present situation of iron and steel industry
1) High electricity cost: Electricity from MERALCO = US$0.11/kWh
2) High transportation and handling costs. Equipment improvement is
necessary.
3) Financing problem. Financing organizations are very careful because of the
currency crisis in 1997 through 1998.
4) Ineffective and unnecessarily high-quality standards are forced. As a result,
cost reduction is difficult.
5) New investors as well as existing manufacturers should be encouraged to
make investment so that the operation cost will be cut down through
enhancement of equipment and technology and improvement of operation.
New investments depend on how efficiently the problems 1) to 4) are
handled.
II-14
(4)
Issues of customs duties
Regarding the iron and steel industry, some developments were noticed in the
past one year.
1) A new damping act was enforced according to the WTO’s instruction.
2) A safeguard action act protecting domestic industries against the increase of
imports was approved. In 2001 through 2004, the government approved a
new customs duties structure for cutting down customs duties to materials
and products. For semi-products, customs duties will be cut down from 3%.
For final products (bars, coated steel, and pipes), customs duties will be
gradually cut down from 10% to 5%.
As these situations indicate, the iron and steel industry in Philippines is presently
in a very tough status.
In 2003, the price of imported billets has steeply increased. The price was 160 to 170
US$/t last year and the price increase is approximately 100US$/t. Therefore,
manufacturers with EAF are in the condition of full production now. Since production
might be obstructed, some companies visited in the first survey turned down the audit
at the second survey.
II-15
2.
Overview of Factories with Electrical Arc Furnace and Rolling Mill Audited
For implementation of audit and survey for iron and steel industry in Philippines, ECCJ
requested ACE to select two factories with EAF in Manila or adjacent areas.
ECCJ visited the factories of three companies and explained the purpose of audit and
survey, and learned the factory overview, etc. ECCJ picked up two out of these three
companies as candidates and requested DOE to realize re-visit for audit and survey at
the second visit.
By the second visit (February 2003), making a confidentiality protection duty
agreement to two companies, ECCJ carried out the audit and survey.
Overview of each iron and steel company selected is described below.
2.1
Overview of Company A (Factory with EAF)
Location
Product
Number of employees
Working system
Organization
:
:
:
:
:
Metro Manila
Billet
160 (including 7 engineers)
8-hour work with 3 shifts
Figure II-2-1 shows the organization of Company A. The
headquarters is located in Metro Manila.
II-16
Factory Manager
Superintendent
Administration Officer
Supervisors
Office
Rank and File
Employee
Figure I-2-1
Operation overview:
Organization of Company A
This factory produces billets with a small AC EAF and a
continuous casting machine. The company was founded
about 30 years ago and continues a pattern of operation for
11 months a year. The full volume of produced billets is
delivered to a rolling mill company that is several
kilometers away.
The energy sources are electricity and petroleum. The full
volume of electricity is purchased from Manila Electric
Company (MERALCO). For emergency use, this factory
has a private diesel power generator for lighting and
cooling water supply. A special fuel oil (mixture of diesel
oil 60% and bunker oil 40%) for the ladle heating burner.
In addition, coke and oxygen (purchased oxygen and
oxygen privately generated by PSA) are used to run the
EAF. For continuous casting, LPG is purchased to cut
billets.
2.2
Equipment and Capacity of Company A
(1)
Equipment
EAF:
AC furnace
Rated capacity: X t/heat,
Maximum capacity: 1.4X t/heat
1 set
Continuous casting machine: 2-strands billet continuous casting machine 1 set
II-17
Dust collector:
Push-in type bag filter
1 set
PSA (oxygen producing) equipment:
Air compressor:
Overhead traveling crane:
Scrap/slag carrying car:
Cooling water supplying/treatment equipment:
Electricity receiving equipment:
Emergency power supply equipment (diesel power generator):
In addition, there are lightings and air conditioners.
(2)
1 set
3 sets
9 sets
2 sets
1 set
1 set
1 set
Factory layout
Figure II-2-2 shows the factory layout of Company A.
This layout shows that the EAF and continuous casting machine are installed in
the same yard.
Scrap yard
Continuous casting machine
EAF
Figure II-2-2
(3)
Factory Layout of Company A
Operating system
About 140 workers with 3 shifts, 11-month operation a year
The shutdown period for maintenance is 8 hours every week and 1 month
including the year end and new year.
II-18
(4)
Energy in use
Table I-2-1 shows types of energy used in the factory.
Table I-2-1
Type
Special fuel oil
Diesel oil
LPG
Coke
Electricity
Purchased oxygen
Types of Energy in Use
Application
Remarks
Ladle heating
Diesel oil 60%, bunker oil 40%
Truck
Continuously casting; billet cutting
EAF injection
EAF, etc.
Emergency power is privately
generated.
EAF injection
Privately generated and
purchased
II-19
2.3
Overview of Company B (Factory with Rolling Mill)
Location
Product
Number of employees
Working system
Organization
:
:
:
:
Operation overview
:
About 1 hour by car from Metro Manila
Reinforcing steel bar
450 (including 56 engineers)
8-hour work with 3 shifts
Figure II-2-3 shows the organization of Company B.
The headquarters is located in Metro Manila.
This factory imports all billets (material) from foreign
countries and rolls them to produce reinforcing steel bars.
The production capacity is more than 300 thousand t/y.
The company is likely to be affected by economic
situations of foreign countries and seems to be making
efforts in procurement of material.
When we visited for audit and survey, operation was shut
down for a weak because of material shortage, and
equipment maintenance was being implemented.
Factory Manager
Business Operations
Shipping
Factory Operations
Technical
Service
Figure I-2-3
2.4
Production
Factory Gen.
Service
Organization of Company B
Equipment and Capacity of Company B
(1)
Equipment
Heating furnace : Walking beam type heating furnace using bunker oil
for rolling
Capacity of heating furnace: Maximum 65 t/h or more, long
billets heatable
Burner layout: set on both sides
Exhaust heat recovery recuperator provided
II-20
Rolling machine : Tandem horizontal/vertical type, linear layout
Continuous quenching machine provided
Cooling bed
Electricity receiving/transformer equipment:
4 sets
Air compressor:
6 sets
Cooling water supply and water treatment equipment: 1 set
In addition, there are emergency power supply equipment, lighting, and air
conditioner as the equipment in the rolling mill.
(2)
Factory layout
Figure I-2-4 shows factory layout of Company B.
Billet yard
Heating
furnace
Rolling
machine
Cooling
bed
Figure I-2-4
(3)
Factory layout of Company B
Operating system
3 shifts, 24-hour operation
II-21
(4)
Energy consumption
Table I-2-2 lists types of energy used in the rolling mill.
Table I-2-2
Type
Heavy oil
LPG
Oxygen
Electricity
Types of Energy Used in the Rolling Mill
Application
Remarks
Heating furnace
Bunker oil S: 2.5 to 2.9%
Billet cutting
Billet cutting
Machine operation, lighting, etc. Emergency power is privately generated.
II-22
3.
Audit Plan
The situation at the first visit was described in the preceding section.
The purpose of audit and survey by visiting Philippines was to grasp the product
manufacturing processes, energy consumption, and actual status of exhaust heat
utilization of the selected factory with EAF, offer an improvement plan for promotion of
energy conservation, and convene a workshop to introduce the energy conservation
technologies and activities in Japan and enhance and propagate consciousness on energy
conservation for enlightenment. Further, it was intended to provide support so that
persons of ASEAN promoting energy conservation can establish the standard energy
conservation audit method, based on the status of similar industries and the technical
levels of energy conservation audit in ASEAN countries, after implementation of the
energy conservation audit.
Audit and survey were implemented during the second visit.
First, the energy conservation workshop was convened. Following the explanation on
these activities by ACE and DOE, ECCJ introduced the energy conservation technology
being implemented for the iron and steel industry in Japan to develop understanding.
Audit was implemented in two factories. Confirmation with the questionnaire sent in
advance and actual survey in the factories were performed. In the first factory,
particularly, a wrap-up meeting was held to propose the improvement plan.
3.1
Audit Proceeding
(1) Company A
Company A that accepted energy conservation audit and survey owns the factory
visited in the first visit. The Factory Manager was very much concerned about
cost reduction and therefore he was very cooperative with the audit and survey.
The response to the questionnaire had been prepared. The response was checked,
factory tour was made, and then the site was re-visited to implement audit.
The meters used by the audit team were the radiation thermometer, illuminance
meter, and clamp type ammeter brought from Japan.
(2)
Company B
We first brought the questionnaire and gave explanation. The actual audit and
survey were performed on the following day only but audit itself was impossible
because factory had been shut down as described before. We checked the
response to the questionnaire, acquired information on operation, and made a
factory tour to see the equipment under maintenance.
Taking photographs at the site was strictly forbidden by the both companies,
therefore visual information couldn’t obtained at all.
II-23
3.2
Selection of Equipment to be Audited and Checking the Response to the
Questionnaire
Energy used in the factory with EAF is mostly electricity (purchased electricity) used
for the EAF, motor drive to run equipment, etc. Energy conservation should be applied
to and focused on electricity.
Although the questionnaire from ECCJ was handed to these companies one day before
the audit, responses in a satisfactory level were prepared. We gained a good
understanding and cooperation, and were able to check the contents smoothly.
The questionnaire is attached.
3.3
Audit Schedule
During the first visit, three factories with EAF were visited but they did not accept
audit and survey. As a result, we simply learned the operation status. Company A was
about 1 hour away by car from the Manila city center. Companies C and D were 80
km away from the Manila city center and it took more than 2 hours to visit these sites
because of traffic jam.
Actual audit and survey were performed during the second visit. It took 2 days for
audit and survey in Company A including the meeting, and 1.5 days for Company B
that determined acceptance upon the second visit.
First survey: Implemented in December 2002
December 16 (Mon.)
Meeting with DOE and ACE to discuss about
audit implementation.
Visited BOI to learn the current status of the iron
and steel industry in Philippines.
Visited PSA to discuss a way out of the current
difficulty in finding the factories to be audited,
explain the factories to be visited, and request for
introduction.
December 17 (Tue.)
Visited Company A to learn the operation status.
December 18 (Wed.)
Visited Company C to learn the operation status.
Visited Company D to learn the operation status.
December 19 (Thu.)
Visited DOE to request for arrangement of the
factories to be visited during the second visit.
Second survey: Implemented in February 2003
February 10 (Mon.)
Workshop on making energy more efficient and
energy conservation convened (DOE, ACE,
engineers from three iron and steel
manufacturers, and ECCJ)
II-24
February 11 (Tue.)
February 12 (Wed.)
February 13 (Thu.)
February 14 (Fri.)
Visited Company A to implement audit and
survey (Acceptance by Company B determined.)
Visited the persons concerned in DOE
Visited the chief secretary of PSA and acquired
iron and steel production information.
Visited Company B and explained about the
questionnaire on audit.
Visited Company B and implemented audit and
survey.
Visited Company A and has a wrap-up meeting
with DOE and ACE.
Reported the energy conservation improvement
plans.
II-25
4.
4.1
Equipment Audited
Audit and Survey in Company A
(1)
AC EAF
EAF
: small type AC EAF
1 set
Rated capacity : X t/heat, Maximum capacity: 1.4X t/heat
2) Operating method
Scrap is charged 7 times/heat on average.
For melting, the schedule is managed; the first and second times are 14
minutes, the third time is 9 minutes, four to seven times are 6 minutes each.
The tap-to-tap time is approximately 135 minutes.
As the sub-materials for melting, oxygen and coke are injected.
(2)
Continuous casting (CC) equipment
1) Equipment specifications
Continuous casting equipment : 2-stands billet CC
Casting time
: 50 to 55 minutes/heat
2) Current operation
Continuous operation is performed for 11 months. For one month from the
middle of December to the middle of January, the equipment is shut down
and maintenance is implemented. The products are mostly 100 billet.
Annual operation time: 7920 h (11 m × 30 d/m × 24 h/d)
(3)
Power receiving/transforming equipment
1) Capacities of major equipment (Table II-4-1)
II-26
Table II-4-1
No.
1
2
3
4
5
6
7
8
9
Quantity of Major Equipment in Company A
Name
EAF
Continuous casting equipment
Dust collector
PSA equipment for oxygen generation
Air compressor
Over head traveling crane
Cooling water equipment (pump, fan)
Deep-well pump
Lighting equipment (shop, office)
Quantity
1
1
1
1
3
9
15
2
1
Remarks
2) Emergency power supply equipment (Table II-4-2)
Table II-4-2
No.
1
Emergency Power Supply Equipment in Company A
Name
Emergency diesel power generation
equipment
Equipment capacity Quantity
1000 kVA
1
3) Operating method
Power from MERALCO is always received via the electricity
receiving/transforming equipment. Comparing with the maximum
electricity, approximately 55% on average is always received.
Upon the failure of power from MERALCO, the emergency power supply
equipment supplies electricity to cooling water equipment and lighting
equipment.
(4)
Dust collector
1) Equipment components
The equipment of the dust collector is shown below.
a. Main fan
: 1 set
b. Booster fan
: 1 set
c. Reverse fan
: 1 set
d. Other components : 1 set
2) Operating method
During operation of the EAF, the main fan sucking dirty air from the
building and the booster fan to suck directly from the furnace run
continuously.
The reverse fan always runs for dust cleaning of the bag filter.
II-27
(5)
PSA equipment
1) Equipment components
The equipment components are shown below.
a. Vacuum pump
: 1 set
b. Air blower
: 1 set
c. Oxygen compressor : 1 set
d. Other components : 1 set
2) Operating method
PSA runs during the operation of furnace. Insufficient oxygen is covered by
purchase of liquid oxygen.
(6)
a. No. 1 reciprocal air compressor 30 kW:
b. No. 2 reciprocal air compressor 30 kW:
c. No. 3 reciprocal air compressor 30 kW:
1 set
1 set
1 set
2) Operating method
The operating method is shown in Figure II-4-1.
Unloading
No. 1
20A
Loading
37A
0.65m3
To the factory
0.65m3
No. 2
0.65m3
Shut down No. 3
Figure II-4-1
(7)
Operating Method of Air Compressor
Cooling water equipment
1) Operating method of the cooling water equipment for the EAF
For the pump and fan, one set is in service and a reserved set is in standby
mode.
II-28
2) Operating method of the deep-well pump and cooling water equipment for
auxiliary equipment
For the pump, one set is in service and another set is in standby mode.
II-29
4.2
Audit and Survey in Company B
On the day of February 12, 2003 for audit and survey, the factory was shut down
(audit and was survey scheduled on February 11 though 13). Therefore, survey and
audit on energy conservation during factory operation were impossible. The visit to
the site and the contents that we learned are outlined below.
(1)
Heating furnace for rolling, rolling machine --- 1 line
This factory purchases 130 × 12000 mm L billets, heats in the heating furnace,
produces steel bars with a rolloing mill, and ships.
The products are reinforcing bars of 10 – 50 mm in diameter.
(2)
1) Outline of major equipment (Table II-4-3)
Table II-4-3
Major Equipment in Company B
No.
Name
Quantity
Remarks
1 Heating furnace fuel pump
2
Push-in blower for combustion
1
Exhaust gas fan
1
2 Rolling machine
1
3 Tempcore machine
1
Quenching equipment
4 Cutting machine
1
5 Cooling water equipment for rolling machine
1
6 Cooling water equipment for tempcore box
1
7 Cooling water equipment for auxiliary
1
equipment
8 Cooling water equipment for heating furnace
1
9 Air compressor
(1) 100 kW × 14.15 m3/min
2
3
(2) 200 kW × 28.3 m /min
4
10 Lighting equipment
1
2) Emergency power supply equipment (Table II-4-4)
Table II-4-4
No.
1
Emergency Power Supply Equipment in Company B
Name
Emergency diesel power generator
equipment
II-30
Equipment capacity
Quantity
500 kVA
1
3) Operating method
Electricity from MERALCO is always received via the electric power
receiving/transforming equipment. About 70% of the contracted capacity is
always received.
Upon the failure of electric power from MERALCO, the emergency power
supply equipment supplies electricity to cooling water equipment and
lighting equipment.
(3)
1) The following air compressors are installed in this factory as shown in Table
II-4-5.
Table II-4-5
Air compressor Equipment in Company B
Air compressor
Capacity
14.15 m3/min × 100 kW
28.3 m3/min × 200 kW
28.3 m3/min × 200 kW
14.15 m3/min × 100 kW
28.3 m3/min × 200 kW
28.3 m3/min × 200 kW
2) Air receiver tank capacity
A tank with a capacity of 20.52 m3 is provided as a common receiver tank
on the outlet side of No. 1 to 6 air compressors.
3) Operating method
There are enough capacities of compressed air to supply to the both big and
small factories, but small one has been shut down. The volume of
compressed air used during operation of the big factory is approximately 40
m3/min.
Therefore, two or three air compressors are run for operation of the big
factory to supply compressed air.
(4)
Cooling water equipment
1) Cooling water equipment for rolling mill
Only the required number of cooling water pumps and cooling tower fans
are run with standby reserved machines.
II-31
2) Cooling water equipment for tempcore box (bar quenching equipment)
3) Cooling water equipment for auxiliary equipment
4) Cooling water equipment for heating furnace
For the cooling water pump and cooling tower fan, one set is in service and
there is no reserved equipment.
II-32
5.
5.1
Results of Survey and Measurement on Energy Conservation
Results of Survey and Measurement in Company A
(1)
AC EAF
1) EAF operation
Company A consumes approximately 600 kWh/t (i.e. electric power
consumption of the overall factory divided by the billet production volume)
for billet production. Since there is no data indicating power consumption at
each location, clear judgment is impossible. However, electricity unit
consumption seems to be more than 500 kWh/t if it is assumed that
electricity consumption for auxiliary equipment other than the EAF is 100
kWh/t.
For energy loaded into the EAF, electrical energy from electrodes and
reaction heat by coke and oxygen injection are mainly used. Generally,
scrap preheating and the additional heating for the furnace by heavy oil
burners are used. However, this factory does not adopt these means. Since a
considerable amount of equipment investment is required to implement
them, it was determined to direct attention to the operating method.
2) Problems in operating the EAF
For operation of the EAF, 1 cycle (tap-to-tap time) requires about 2.3 hours
(about 10 heats a day). The reason is that the frequency of scrap charge is 7
times on average (maximum 11 times) and much time is required for other
than the actual scrap melting time.
Two possible causes are considered:
a. The bulk density of scrap seems to be small. Therefore, cutting long
scrap materials, pressing scrap with much air gaps, and so on should
increase the bulk density of scrap.
b. The inner volume of the furnace should be increased as much as
possible.
The heat loss can be reduced and, consequently, the energy consumption can
be cut down by increasing the bulk density of scrap and melting efficiency,
then shortening the cycle time (tap-to-tap time).
II-33
(2)
1) Electricity charge system
Electricity charge system provided by MERALCO is as follows:
c Basic charge
: Monthly demand electricity kW × 20
pesos/kW
d Metered charge
: Monthly used electrical energy kWh ×
1.85 pesos/kWh
e Power factor discount rate : (Actual power factor (%) – 85) × 0.3
f Power factor discount
: (c + d) × e/100
g Primary discount
: (c + d) × 3/100
h Exchange rate adjustment : (c + d – f – g) × 7.04/100
i Purchased power
adjustment (PPA)
: Monthly used electrical energy kWh × 2.45
Electricity charge to be paid = c + d – f – g + h + i
2) Problems in using electricity in this factory
a. The maximum electricity is too large against the average electricity in
normal use (double of the rated capacity). The maximum electricity
(peak) should be reduced.
b. Presently, the power factor is approximately 98%. The power factor
should be improved.
(3)
Dust collector equipment
During operation of the EAF, the main fan and the booster fan are continuously
running. Particularly, the booster fan is the dust collecting fan for the EAF only
and it is continuously run even though the EAF is in standby mode.
According to the operation status of the EAF and the dust load, the volume of
exhaust gas from the dust collecting fan should be adjusted through the
revolution control to achieve energy conservation.
(4)
Air compressor
Three air compressors have been installed.
Two air compressors are on load state but the other is run in almost unloaded
state.
It is recommended to install a 1 m3 air receiver tank and to control the number of
air compressors in service operating two air compressors for energy
conservation.
II-34
5.2
Results of Survey and Measurement in Company B
(1)
Heating furnace for rolling
1) Operation of the heating furnace for rolling
Company B imports cold billets, heats them to up to 1240°C in a heating
furnace for rolling, rolls them to reinforcing steel bars (D-bars), and ships
them.
As a measure for energy conservation, the metal tube type recuperator is
used for preheating combustion air with the exhaust gas heat.
The fuel for the heating furnace is bunker oil (S: 2.5 to 2.9%). Fuel
consumption is slightly more than 30 L/t approximately.
2) Measure for further improving exhaust heat recovery
Although fuel consumption is in a satisfactory level presently, the metal
tube type of recuperator may be changed into the regenerative burner type
using ceramics for further improved heating element.
(2)
1) Electricity charge system (Same as company A)
Electricity charge system provided by MERALCO is as follows:
c Basic charge
: Monthly demand electricity kW × 220
pesos/kW
d Metered charge
: Monthly used electrical energy kWh × 1.85
pesos/kWh
e Power factor discount rate : (Actual power factor (%) – 85) × 0.3
f Power factor discount
: (c + d) × e/100
g Primary discount
: (c + d) × 3/100
h Exchange rate adjustment : (c + d – f – g) × 7.04/100
i Purchased power
adjustment (PPA):
Monthly used electrical energy kWh × 2.45
Electricity charge to be paid = c + d – f – g + h + i
2) Problems in using electricity in this factory
a. The maximum electricity is too large against the average electricity in
normal use (1.5 times of the rated capacity). The maximum electricity
(peak) should be reduced.
b. Presently, the power factor is approximately 94.25%. The power factor
should be improved.
II-35
(3)
Presently, the M-1 factory only is operating. Depending on the operation status,
two or three air compressors are run to supply compressed air.
By using the existing common air reservoir tank, controlling the number of air
compressors in service should be adopted with three air compressors to achieve
energy conservation.
II-36
6.
Recommendation for Energy Conservation and Expected Effects
Calculation of the expected effects is shown in the recommendations given below.
These are assumed values and may not match the values upon audit and survey. Please
understand that these values represent the degree of energy conservation effects.
6.1
Recommendation and Expected Effects in Company A
(1)
Energy conservation through reduction in the AC EAF’s tap-to-tap time
1) Reduction of the tap-to-tap time
a. Reduction of the number of scrap charge
Increasing the inner volume of the EAF and increasing the bulk density
of scrap can reduce the number of scrap charge. Figure II-6-1 shows the
current standard operation pattern of the EAF in Company A.
To increase the bulk density of scrap, long scrap material should be cut
or scrap with a small density should be pressed as a pre-treatment. As a
result, if the current average number of scrap charging times of 7 can be
reduced to 6 or 5, then the melting time is reduced by 4 minutes or 8
minutes. Assuming that the bulk density of the scrap currently charged
is low (not measured yet) and it comes close to 0.74 t/m3 by 0.03 t/m3,
the melting time can be reduced by 1 minute. With the effect of oxygen
injection additionally, the time will be shortened further.
b. Reduction of the refining time
The refining time required is 30 to 45 minutes. The time can be reduced
by making oxygen and coke injection more efficient and changing the
power supply method.
2) Effects expected by reduction of the tap-to-tap time
Regarding the relationship between the scrap’s bulk density and melting
time, it is said that melting is fastest when the bulk specific gravity is 0.74
t/m3 according to experiences in Japan. (See Figure II-6-2, example in
Japan.)
Heat emission from the EAF and heat extraction from the cooling water for
furnace body are in proportion to time. In the site, meters were not provided
and no data was available, so it was impossible to check the heat balance of
the EAF. This heat loss is approximately 10% according to experiences in
Japan.
If the overall tap-to-tap time is reduced by 10%, then the total heat loss
reduces by 1%. Further, 1% more can be reduced through efficiency
improvement, etc. This is totally 2%, that is, it is estimated that 10 kWh/t
can be reduced.
II-37
The effect can be calculated by multiplying electricity expenses and yearly
production.
In the future, the tap-to-tap time for the plain carbon steel can be reduced to
100 minutes and power consumption can be reduced to 450 kWh/t as a
result of operation improvement and so on.
3) Amount of investment to increase the inner volume of the EAF
If space increase is possible by modifying the upper part of furnace walls in
the EAF, the volume of scrap increase by 0.7 m3, that is approximately 0.5
t/charge, is possible when the upper part of the furnace walls in the EAF is
raised. Furthermore, increase of 1.4 m3 will make 1 t/charge increase of
scrap increase. Such modification should be considered to decrease charging
of scrap 1-2 times.
Melting time (min/heat)
Cost of construction for raising the upper body of furnace:
The steel materials of approximately 4 t and machining cost: US$40000
Cost of field modification and installation:
US$30000
Total:
US$70000
Bulk density of scrap in a basket (t/m3)
Figure II-6-2 Relationship Between the Scrap’s Bulk Density and
Melting Time
II-38
Caster
8'
Casting 50∼55'
Dust Catcher Fan
Main
Booster
Reverse
Operating
Operating
Operating
Ladle 1
Ladle 2
Heating 60'
Oxygen
Coke
Water
Injection
Injection
Operating
Electric Power
II-39
Scrap charging
weight
Tap
Normal 5' 3'
Repair 25'
0'
100%
1st
Scrap
W1
90%
2 nd
Scrap
W1
14'
4'
22
3 rd
Scrap
W2
14'
4'
4 th
Scrap
W3
9'
40
4'
53
6'
5 th
Scrap
W3
4'
63
6'
6 th
Scrap
W3
4'
73
6'
4'
83
7 th
Scrap
W3
Refining
6'
30∼45'
93'
Electrode up, Roof open, Scrap charge, Roof close, Electrode down
Tap
Tap End
4'
123'∼１38'
Ave. 30.5'
127'∼１42'
Ave. 134.5'
Time (min)
127'∼１42'∼Max. 162min
Figure II-6-1
EAF Operation Pattern in Company A
(2)
1) Reduction of the basic charge through reduction of the demand electric
power (peak)
a. Operation by introducing the demand controller
c If the actual maximum electric power (15-minute demand value) is
likely to exceed the target demand value, this system suppresses the load
of the EAF or automatically shuts down part of the dust collecting
equipment and PSA equipment to maintain the value below the target
demand. (Figure II-6-3)
MERALCO
kW
XXXX
Target demand value
(set value)
Monitoring of
maximum electricity
Actual demand value
5
Company A
10
15 minutes
Demand controller
X: Since the target demand is likely to be exceeded, the load of the
factory is partly limited or automatically shut down.
Figure II-6-3
Demand Controller Method
d Equipment to be limited or shut down automatically (Assumed value)
Load to be limited
Limitation of the EAF load
Load to be shut down Shutdown of part of PSA equipment
automatically
Shutdown of part of dust collecting
fans
Total
∆500 kW
∆350 kW
∆150 kW
∆1000 kW
b. Effect expected from demand cutting ( ∆1000 kW)
Operation is performed for 11 months a year. However, since the basic
charge and so on are paid, the annual consumption is divided by 12 for
calculation of the value per month. Then, the value should be multiplied
by 12 as the annual cost. The same calculation method should be
applied to 2) below.
The annual merit is US$52620/y... See Table II-6-1.
II-40
c. Equipment investment amount (Calculated as equipment equivalent of
the assumption in Table II-6-1.)
(Breakdown)
Demand controller 1 set:
US$15000
Installation cost
1 set:
US$10000
Total
US$25000
2) Power factor discount through improvement of the power factor of
electricity receiving from MERALCO
a. Power factor improvement (98 → 100%)
The Power Factor Capacitor should be enhanced.
The required capacity is 1.5 Mvar.
b. Effect expected from power factor improvement (98 → 100%)
Annual merit is US$1106/y. ...See Table II-6-2.
c. Equipment investment amount: (Calculated as equipment equivalent of
(Breakdown)
Vacuum switchgear 1 set: US$25000
Capacitor
1 set: US$70000
Installation cost
1 set: US$5000
Total
US$100000
For 1) and 2) above, expected effects through reduction of electricity charge
paid to MERALCO were summarized. Implementation of 1) and 2) above
can contribute to energy conservation and resource conservation
surrounding the power company and this factory on a macro basis.
(3)
Energy conservation through controlling revolutions of dust collecting fan
1) Method of controlling revolutions of dust collecting fan
With the EAF operation status and dust load as control signals, energy
conservation should be attempted through controlling revolution of the dust
collecting fan by the inverter unit. (Figure II-6-4)
II-41
To the bag filter
Main fan
Inverter unit
Booster fan
EAF
Dust load control signal
Figure II-6-4
Method of Controlling Revolutions of Dust collecting fan
2) Effects expected through controlling revolutions
(Prerequisites)
• While the arc of the EAF is running, revolutions of the booster fan are
100%.
• While the arc of the EAF stops (in standby mode), revolutions of the
booster fan are 50%.
• The tap-to-tap time is 135 minutes as a cycle, and the arc running time
is 98.5 minutes as a cycle. Ten cycles are performed a day. Operation
days are 330; 11 months.
• The time in which the arc stops (in standby mode) :
(1440 – 98.5 × 10) min/d = 455min/d = 7.58h/d
Annual expected effect = (Motor output: X) × [1 – (1/2)3] × 7.58h/d ×
330d/y × (Unit price of electricity charge: Y)
Peso/kWh
= 2190･X･Y Peso/y
US$43.8･X･Y/y with an exchange rate of 1US$ = 50 peso
3) Equipment investment amount: US$50000
(Breakdown)
Inverter unit:
US$38000
Installation cost:
US$12000
II-42
(4)
Energy conservation through introduction of controlling the number of air
The number of air compressors corresponding to the compressed air volume
required by the factory should be run.
The number of air compressors in service is controlled by detecting the
pressure of the newly installed tank (1 → 2 → 1 → 0 → 1...). (Figure II-6-5)
Recommendation on energy conservation
Newly installed receiver tank
Reciprocal air
compressor
0.65 m3
1 m3
30 kW
Factory
0.65m3
Reciprocal air
compressor
30 kW
Pressure signal
Reciprocal air
compressor
(shut down)
0.65 m3
30 kW
Unit controlling the
number of air
Control command
Controlling the number of air compressors
in service with two air compressors
Figure II-6-5
Method of Controlling the Number of Air Compressors
2) Effects expected through introduction of controlling the number of air
Unloading electricity = √3 × 0.4 kV × 20 × 0.85× 0.8 (unloading rate) = 9.42 kW
Annual expected effect = 9.42 kW × 7920 h/y × 4.78 Peso/kWh = 356619 Peso/year
US$7130/y with an exchange rate of 1 US$ = 50 pesos
3) Equipment investment amount: US$23000
(Breakdown)
Unit controlling the number of air compressors in service: US$15000
US$3000
Air receiver tank 1 m3:
Installation cost:
US$5000
II-43
<Assumptions for merit calculation>
Contracted electricity :
Power factor
:
Electricity used
:
Table II-6-1
No.
10000 kW → 9000 kW (10% reduced)
98%
3000000 kWh/m
Table of Electricity Charge Through Contracted Electricity Reduction
in Company A
Item
Current charge (Peso)
Electricity contracted
= 10000 kW
Improved charge (Peso)
= 9000 kW
c
Basic charge
kW × 220 Peso/kW
2200000
1980000
d
Metered charge
kWh × 1.85 Peso/kWh
5550000
5550000
e
Power factor discount rate
(Actual power factor rate (%) – 85) × 0.3
3.9
3.9
f
Power factor discount
(c + d) × e/100
302250
293670
g
Primary discount
(c + d) × 3/100
232500
225900
h
Exchange rate adjustment
(c + d – f – g) × 7.04/100
507954
493534
i
Purchased power adjustment (PPA)
kWh × 2.45
7350000
7350000
j
Monthly electricity charge to be paid
c+d–f–g+h+i
15073204
14853964
Merit by reduction in the contracted electricity (10000 → 9000 kW): 219240 peso/m
US$ 4385/y with an exchange rate of 1 US$ = 50 peso
The annual merit is US$ 52620/y.
II-44
Contracted electricity : 10000 kW
Power factor
: 98 → 100%
Electricity use
: 3000000 kWh/m
Table II-6-2
No.
Table of Electricity Charge Through Power Factor Improvement in
Company A
Current charge (Peso) Improved charge (Peso)
(P.F = 98%)
(P.F = 100%)
Item
c
Basic charge
kW × 220Peso/kW
2200000
2200000
d
Metered charge
kWh × 1.85Peso/kWh
5550000
5550000
e
3.9
4.5
f
(c + d) × e/100
302250
348750
g
Primary discount
(c + d) × 3/100
232500
232500
h
(c + d – f – g) × 7.04/100
507954
504680
i
kWh × 2.45
7350000
7350000
j
c+d–f–g+h+i
15073204
15023430
Merit through power factor improvement (98 → 100%): 49774 peso/m
US$ 995/m with an exchange rate of 1 US$=50 peso
The annual merit is US$11940/y.
II-45
6.2
Recommendation and Expected Effects in Company B
(1)
1) Adoption of the regenerative burner for the heating furnace for rolling
Although a metal tube type recuperator for heating combustion air is used
for exhaust gas heat recovery, a regenerative burner can be adopted for
further reduction of fuel consumption.
Since bunker oil (S: 2.5 to 2.9%) is used as the fuel, effects of sulfur to
ceramics should be considered but fuel consumption can be improved by at
least 10%.
Although fuel consumption is relatively good at present, we recommend
changing to the regenerative burner system using ceramic shown below.
For introduction, clearance with surrounding equipment should be checked
and whether a sufficient space for modification is provided should be
studied.
Heating furnace
Fuel changeover valve
Regenerator
(heat accumulator)
Induced fan
Figure II-6-6
Intake/exhaust
changeover valve
Blower
Schematic Diagram of Heating Furnace Using Regenerative Burner
This burner mechanism is depicted in section 7 and allows you to acquire
preheated air at a high temperature. The temperature effectiveness is more
than 85%.
Figure II-6-7 shows the relationship between the preheated air temperature
and energy conservation rate (result in Japan).
The regenerator allows you to obtain preheated air at a temperature higher
than that obtained by the recuperator and the energy conservation rate is 10
to 20% higher.
II-46
Regenerator (heat accumulator)
Energy conservation rate (%)
Recuperator
Furnace
temperature
No exhaust heat
recovery
Preheated air temperature (°C)
Figure II-6-7 Heating Furnace for Rolling with a Regenerative Burner
Containing a Ceramics Heat Accumulating Element
2) Effects expected through introduction of the regenerative burner
If it is assumed that fuel consumption is reduced by 10%, the volume is 3
L/t. Annual savings of fuel is calculated by multiplying the annual
production to the consumption.
3) Investment for introduction of the regenerative burner
For example, installing a regenerator as an equivalent of 2 Mcal/h burner
costs about US$25000, including installation cost, estimated by Japan.
When multiplying a unit number, total installation cost can be calculated,
not including reconstruction cost. Engineering a reconstruction and
equipment shutdown period should be necessary.
II-47
(2)
1) Reduction of the basic charge through reduction of the demand electric
power (peak)
a. Operation by introducing the demand controller
c If the actual maximum electric power (15-minute demand value) is
likely to exceed the target demand value, this system issues an alarm
with a hazard light for autonomous load limitation and suppresses the
maximum electric power below the targeted demand value. (Figure II-68)
MERALCO
kW
XXX
Target demand value
(set value)
Monitoring of the
maximum electricity
Actual demand value
5
Company B
10
15 minutes
Demand controller
X: Since the target demand is likely to be exceeded, the hazard light
issues an alarm at this point. With this alarm, the load is limited to
the value that the production activities are not obstructed and the
maximum electricity is suppressed below the targeted demand
value.
Figure II-6-8
Method of Demand Controller
d Equipment to be limited or shut down automatically
Since the load status on the day of audit was unknown, the object cannot
be identified.
b. Effects expected through demand cutting ( ∆500 kW)
If peak cutting of 500 kW is possible with the load limitation described
above, the effect is as follows:
Annually US$ 26630/y...See Table II-6-3.
II-48
(Breakdown)
Demand controller
1 set:
US$ 15000
Installation cost
1 set:
US$ 10000
Total
US$ 25000
2) Power factor discount through improvement of power factor for electricity
received from MERALCO
The average electricity receiving power factor in 2002 is 94.25%. Based on
this fact, the following study was implemented:
a. Power factor improvement (94.25 → 100%)
The power factor capacitor should be enhanced.
b. Effect expected through power factor improvement (94.25 → 100%)
Annually US$ 22560/y...See Table II-6-4.
(Breakdown)
Vacuum switchgear 1 set : US$ 25000
Capacitor
1 set : US$ 75000
Installation cost
1 set : US$ 5000
Total
US$ 105000
(3)
Energy conservation through introduction of controlling the number of air
The number of air compressors corresponding to the compressed air volume
required by the factory should be run.
The number of air compressors in service is controlled by detecting the
pressure of the newly installed tank (1 → 2 → 3 → 2 → 1...). (Figure II-6-9)
II-49
Recommendation on energy conservation
Existing receiver tank
No. 1
20.52 m3
100
kW
No. 2
200
kW
No. 3
200
kW
No. 4
Shut down
100
kW
No. 5
Shut down
200
kW
No. 6
Shut down
200
kW
Factory
Pressure signal
Control command
Unit controlling the number
Controlling the number of air
compressors in service with
three air compressors
Figure II-6-9
Method of Controlling the Number of Air compressors
b. Effect expected through introduction of controlling the number of air
Since the factory was shut down on the day of audit, it was impossible
to grasp the running status of air compressors, particularly each air
compressor’s loading/unloading status.
Calculation of the expected effect was impossible.
c. Equipment investment amount: US$ 25000
(Breakdown)
Unit controlling the number of
air compressors in service:
US$ 15000
Installation cost:
US$ 10000
Total
US$ 25000
II-50
Power factor
:
Electricity used
:
Table II-6-3
No.
8000kW → 7500kW
94.25%
1800000 kWh/y
Table of Electricity Charge Through Contracted Electricity Reduction
in Company B
Item
Current charge (Peso)
= 8000 kW
Improved charge (Peso)
= 7500 kW
c
Basic charge
kW × 220Peso/kW
1760000
1650000
d
Metered charge
kWh × 1.85Peso/kWh
3330000
3330000
e
2.775
2.775
f
(c + d) × e/100
141248
138195
g
Primary discount
(c + d) × 3/100
152700
149400
h
(c + d – f – g) × 7.04/100
337642
330345
i
kWh × 2.45
4410000
4410000
j
c+d–f–g+h+i
9543694
9432750
Merit by reduction of the contracted electricity (8000 → 7500 kW): 110944 peso/m
US$ 2219/y with an exchange rate of 1 US$ = 50 peso
II-51
Power factor
:
Electricity used
:
Table II-6-4
No.
8000 kW
94.25 → 100%
1800000 kWh/y
Table of Electricity Charge Through Power Factor Improvement in
Company B
Current charge (Peso) Improved charge (Peso)
(P.F. = 98%)
(P.F. = 100%)
Item
c
Basic charge
kW × 220Peso/kW
1760000
1760000
d
Metered charge
kWh × 1.85Peso/kWh
3330000
3330000
e
2.775
4.5
f
(c + d) × e/100
141248
229050
g
Primary discount
(c + d) × 3/100
152700
152700
h
(c + d – f – g) × 7.04/100
337642
331461
i
kWh × 2.45
4410000
4410000
j
c+d–f–g+h+i
9543694
9449711
Merit through power factor improvement (94.25 → 100%): 93983 peso/m
US$ 1880/m with an exchange rate of 1 US$=50 peso
II-52
6.3
Summary of Energy Savings
The figures below are based on assumption mentioned above and presented for
reference.
Item
Company A
US$/y
Company
Expected effect
Company B
US$
Equipment
investment amount
US$/y
US$
Expected
Equipment
effect
investment amount
1. Shortening the tap-totap time of the EAF
∆10kWh/t
70000
−
−
2. Heat recovery from the
heating furnace
exhaust gas
−
−
Fuel ∆10%
25000
× No. of burners
50000
−
−
∆43.8XY
X: Motor (kW)
Y: Electricity
rate
3. Controlling revolutions
(Peso/kWh)
of the dust collecting
fan
(Equivalent to
approx. ∆3.6
kWh/t)
4. Demand control for the
electricity receiving/
transforming
equipment
52620
25000
26630
25000
5. Power factor
improvement
11940
100000
22560
105000
6. Controlling the
number of air
7130
23000
−
25000
II-53
7.
7.1
Guideline for Promotion of Energy Conservation and Audit Manual
Manufacturing Process Overview
The factory with EAF mainly uses scrap as the material. In Philippines, since there is
no process reducing iron ore as an integrated steel mills, energy intensity per ton of
crude steel is lower. The production cost is generally low although it is greatly
dominated by the scrap price. The EAF cannot remove impurities such as Cu, Cr, and
Ni from the scrap, so it is not suitable for production of high-purity quality steel.
However, the EAF contributes to improvement of iron and steel products recycle rate
and the product cost is low. Therefore, its share will be expanded. The EAF and
heating furnace are picked up and explained as characterized equipment in factories
with EAF.
Figure II-7-1 shows the flow of material and product in a factory with EAF.
Figure II-7-1
(1)
Process Flow of Material and Product in a Factory with EAF
EAF
1) Iron and steel making processes with EAF
In iron and steel making processes, after scrap is heated, melted, and
reduced (degassing, etc. are performed on the secondary refining equipment,
if necessary), molten metal is fed to the continuous casting equipment (CC)
and steel blocks, such as billets and slabs are produced.
The energy consumption in the iron and steel processes occupy
approximately 75% of the total energy used in the overall factory. In these
iron and steel making processes, energy used by the EAF is the largest and
occupies the most part of energy used.
In the EAF, scrap is heated and melted by the arc heat generated between
the scrap and electrode and the electrical resistance heat generated in the
scrap. The main energy source is normally the 3-phase AC electricity.
II-54
Figure II-7-2 shows the flow chart of the EAF processes and energy conservation
measures.
Figure II-7-2 Flow Chart of EAF Processes and Energy Conservation Measures
2) Energy conservation through operation and equipment improvement
In iron and steel making processes, improvement of the continuous casting
rate and improvement of EAF’s productivity through injection of
supplementary fuels such as heavy oil and carbon and oxygen injection
greatly contributed to the remarkable energy conservation performance. The
EAF has auxiliary equipment such as the dust collector and cooling water
pump, for which energy conservation is the technology common to other
equipment and therefore description is omitted. Therefore, energy
consumption improvement for the EAF itself is mainly described. The EAF
consumes a large volume of electricity. If it is assumed that the fuel is
converted into electricity in the factory at the net heat efficiency of 35.1%,
electricity of 1 kWh is considered to be equivalent to 10,258 kJ (2,450 kcal).
To reduce the cost of manufacturing molten steel with the EAF, measures
for reducing electric power consumption described below are taken. If the
effect is evaluated with 1 kWh=10,258 kJ (2,450 kcal), it can be seen that
cost reduction can be impacted by energy conservation measures.
II-55
Normally, the EAF suffers stationary losses such as heat losses by cooling
water and heat losses due to emission from the furnace body. If energy
loaded into the EAF is increased and the tap-to-tap time can be shortened,
that is, the loaded energy volume is increased and productivity (tapping
volume per unit time) can be increased, the rate of the stationary losses
reduces and energy consumption can be reduced. Therefore, productivity
improvement is a powerful means for energy conservation of the EAF. Table
II-7-1 shows the heat balance (example) of the EAF. For theoretical analysis
of the energy balance of the EAF, 1 kWh ≠ 860 kcal = 3,600 kJ is used.
Table II-7-1
Heat Balance of EAF
II-56
The following measures are taken to improve the productivity of the EAF:
• Increase of the transformer capacity
• Reduction of electric power consumption through utilization of the
scrap heating/melting burner, oxygen injection, powder injection, and
scrap preheating
• Shortening of the power off time
• Improvement of heat efficiency
• Introduction of the secondary refining equipment
Below are the descriptions for each measure.
a. Increase of the transformer capacity
In recent years, the transformer capacity of the EAF has increased; RP
(Regular Power) → HP (High Power) → UHP (Ultra High Power).
Table II-7-2 shows the relationship between the furnace capacity and
transformer capacity.
Four technologies; c Improvement of the UHP electrode
manufacturing technology, d Improvement of heat resistance through
improvement of the furnace wall/ceiling water cooling technology and
refractory technology, e Improvement of the operation technology such
as slag foaming technology, and f Arc stabilization at the initial stage
of melting by residual molten metal operation, contributed to making
the transformer larger and allowing to load high power.
b. Reduction of electric power consumption
c Scrap heating/melting burner
By providing a scrap heating/melting burner, using kerosene, heavy oil,
natural gas, etc., and supplying the required volume of oxygen at the
same time, scrap heating and melting are promoted. Normally, the
burner is provided toward the cold spot.
Figure II-7-3 shows the effect of reduction of electric power
consumption by the heavy oil burner and Figure II-7-4 shows an
example of providing the scrap heating/melting burner. The effect of the
scrap heating/melting burner is 5 to 9 kWh/L-oil.
II-57
Table II-7-2
Relationship Between the EAF Capacity and Transformer
Capacity
Figure II-7-3 Effect of Heavy Oil Burner on Reduction of Electric Power Consumption
II-58
Scrap heating/melting
burner
Figure II-7-4
Example of Providing the Scrap Heating/Melting Burner
d Oxygen injection operation
The oxygen injection operation directly blows oxygen to the scrap or
molten steel, promotes scrap cutting and Fe oxidization, and improves
the heating and melting speeds. In contrast to these effects, the yield of
tapping becomes low. To solve this drawback, carbon injection was
developed. Presently, electric power consumption is reduced by
effectively combining c Scrap heating/melting burner, d Oxygen
injection, and e Carbon injection together. Electricity of 5.5 kWh per 1
m3N/t of oxygen is reduced. For 20 m3N/t or above, this effect for the
reduction of electric power consumption is halved. If oxygen is further
increased, the losses by metal oxidization increase as an adverse effect.
Figure II-7-5 shows the effect of oxygen injection.
II-59
Electric power consumption (kWh/ch-t)
Figure II-7-5
Effect of Oxygen Injection
e Injection of carbon and aluminum ash
If oxygen and coke powder is injected into the furnace concurrently
with scrap melting by electricity, oxidization heat of Fe and C promotes
scrap melting. The CO gas generated by reaction between FeO and C in
the slag causes the slag foaming phenomenon after melt-down, the arc is
sub-merged in slag, then the heat radiation from arc is prevented to
transmit to the furnace wall, therefore the electricity loading efficiency
is improved.
This sub-merged arc allowed the operation with a higher power factor
and loading of higher power. As a result, improvement of power
consumption, life elongation of furnace wall, and improvement of the
tapping yield were achieved.
Recently, aluminum ash is used as part of combustion supporting
materials. Aluminum ash contains 30 to 40% metal aluminum. With the
oxidization reaction heat of the aluminum ash, power consumption can
be reduced and this reduction effect is 4 to 6 kWh/kg/alum. Further,
addition of aluminum ash prevents abrupt reaction between C in steel
and oxygen and prevents boiling.
f Scrap preheating
For scrap preheating, the exhaust gas sensible heat as the main heat loss
source of the EAF is used to preheat scrap. Traditionally, the charging
buckets containing scrap were put into preheating baths located in the
exhaust gas line for drying and preheating. From the standpoint of
efficiency and shortening of the processing time, scrap is directly charge
in the exhaust gas line on the EAF or two EAFs are used alternately at
present. (See (3).) Figure II-7-6 shows the schematic diagram of scrap
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preheating.
Figure II-7-6
Schematic Diagram of Scrap Preheating
Table II-7-3 summarizes an example of reduction for electric power
consumption.
Table II-7-3
Example of reduction for electric power consumption
Oxygen
Oil
Natural Gas
Coke
Aluminum dross
Scrap pre-heater
0 to 20 m3N/t
> 20 m3N/t
0 to 5L/t
5.5 kWh/m3N
2.7 kWh/m3N
9.0 kWh/L
8.5 kWh/m3N
3.0∼8.3 kWh/kg
5.0 kWh/kg-Aluminum
20 to 40 kWh/t
c. Shortening of power off time
To shorten the tap-to-tap time, the measure of shortening the power off
time described below should be implemented concurrently. Figure II-7-7
shows an example of survey on the tap-to-tap time and power off time.
c Shortening of the scrap charging time by speedup of the movement of
furnace cover up/down and swing, and electrode up/down
d Shortening of the electrode connection time
e Improvement of the furnace’s heat resistance by water-cooling of
furnace walls and shortening of the furnace repair period
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f Shortening of the tapping time through adoption of the EBT (eccentric
Tap-to-tap time (minutes)
bottom tapping) furnace and by the system of receiving molten steel
with a ladle car
Figure II-7-7
Relationship Between the EAF’s
Tap-to-tap Time and Power off Time
d. Improvement of heat efficiency
Adoption of the EBT furnace, computer control of power-on time, slag
foaming technology, bottom blast of gas, and secondary combustion in
furnace will contribute to improvement of heat efficiency. It is said that
heat efficiency of the DC EAF increases by stirring of molten steel by
DC arc and electromagnetic force (electric power consumption is lower
than that of the AC EAF).
e. Introduction of the secondary refining equipment
By adding equipment such as LF (ladle furnace) that refines in the ladle,
the hit rate of the temperature and constituents to the targeted values is
improved. Additionally, the CC operation is stabilized and quality of
steel billets and blooms is improved.
Particularly, by separating the EAF functions from the functions of
refining with the ladle, the temperature of tapping from the EAF can be
lowered, the tap-to-tap time can be shortened, and the sequencial CC
(continuous casting) number can be increased. Note, however, using LF
for the steel type that does not require LF causes demerits.
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f. Lowering the tapping temperature and reduction of the number of EAFs
in service
If speedup of downstream processes (mainly CC) is attempted and the
furnace and ladle are made larger, heat radiation from the ladle and
molten steel in the ladle relatively reduces. Since the tapping
temperature corresponding to this radiation heat value can be lowered,
electric power consumption of the EAF can be reduced. If the tapping
temperature is lowered by 10oC, electric power consumption reduces by
3 kWh/t.
It is said that, if the time from completion of tapping from the EAF to
completion of CC can be shortened from 150 minutes to 100 minutes,
electric power consumption reduces by 50 kWh/t. Thus, CC speedup is
effective for increase of productivity and reduction of electric power
consumption.
If an EAF in service can be reduced while the production volume is
maintained, a significant volume of energy conservation can be
achieved and therefore a large economic effect can be expected.
Therefore, if plural EAFs are provided, reduction of the number of
furnaces in service should always be kept in mind. To reduce the
number of furnaces in service, the necessary tap-to-tap time for the
furnace in service should be obtained and various improvements should
be implemented to achieve the tap-to-tap time. Reduction of the number
of furnaces in service can result in large cost reduction (energy
reduction), so it is often implemented as a means of energy
conservation.
g. Computer control of power-on time (optimization of loaded electricity
volume)
Since voltage/current automatic control is effective for cost reduction
such as improvement of electrode’s electric power consumption as well
as energy conservation, computer control is adopted for most furnaces.
h. Reduction of heat losses by cooling water
Heat losses by cooling water are 10% plus of the heat input to the EAF.
Reduction of these losses is a major issue of energy conservation for
EAFs.
Water-cooling of the furnace body greatly contributes to making the
furnace larger and adoption of UHP and it is useful for energy
conservation of the EAF in spite of heat losses by water-cooling.
However, there are cases in which the water-cooled area is increased too
much and heat losses increase, electric power consumption increases,
and the tap-to-tap time cannot be shortened. Review of the water-cooled
area will be one of the issues for energy conservation.
II-63
i.
Relationship between the tap-to-tap time and electric power
consumption
Table II-7-4 shows the relationship between the EAF’s tap-to-tap time
and electric power consumption.
Table II-7-4 Relationship Between Tap-to-Tap Time and
Electric Power Consumption
Electric power consumption
3) Exhaust heat recovery and equipment modernization
a. Improved EAF
There are factories that have installed two EAFs installed as the twin
shell furnace, each of which alternately has the function of the
heating/melting furnace or scrap-preheating furnace, or have installed
the shaft furnace that continuously heats scrap. These factories have
started operation with the full volume of preheated scrap and then
heated/melted with several new proposed processes in this paper aiming
at reduction of electric power consumption by 20%. Although the result
is not announced, EAFs at 250 kWh/t or below will appear soon.
b. Exhaust heat recovery
Heat recovery from the EAF’s cooling water and exhaust gas is possible.
However, in Japan, there is no implementation example in terms of the
use of hot water as a result of exhaust heat recovery and the recovery
cost.
(2)
1) Rolling process
The rolling mill processes heats steel blocks (billets, blooms, slabs) to the
specified temperature in the heating furnace, rolls them with the rolling mill
and finishes to the desired shape and size.
Normally, most products finished by rolling mill in the factory with EAF are
hot rolling products such as shapes and sections, bar and wires, etc.
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Figure II-7-8 shows the flow chart of the primary rolling process and energy
conservation measures.
•
•
•
•
•
•
•
•
•
Improvement of air/fuel ratio
Improvement of recupirator heat recovery
Extraction of billet at a lower temperature
Improvement of heat pattern
Hot charge rolling/Hot direct rolling
Improvement of heat loss, cooling water loss
Improvement of heat transfer
Improvement of production plan
Optimization of combustion air fan capacity
•
•
•
•
•
•
Figure II-7-8
Improvement of yield
Optimization of auxiliary equipment,
Capacity (cooling water pump,
Mill motor fan, etc)
Increase of productivity
Prevention of idling
Flow of Hot Rolling Process and Energy Conservation Measures
Energy conservation measures for the heating furnace that consumed the
most part of energy in the hot rolling processes are described below.
2) Energy conservation through operation and equipment improvement
For energy used in the hot rolling process, the fuel is 60% and the rest
electricity and steam. Remarkable energy conservation performance has
been shown as reduction of fuel consumption for the heating furnace.
Before the oil crisis, fuel consumption of many heating furnaces exceeded
450 Mcal/t but furnaces at 200 Mcal/t or below have appeared recently.
Table II-7-5 shows an example of a heating furnace’s heat balance.
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Table II-7-5
Example of a Heating Furnace’s Heat Balance
Heating furnaces are categorized into the batch type and continuous type.
The batch type mainly reheats special-shape material, however the
continuous type is the main stream for mass production. As continuous
heating furnaces, there are the pusher type, walking beam type, and walking
hearth type. Since the construction cost of the pusher type is low, it is
adopted for small furnaces at 150 t/h or below. For large furnaces, the
walking beam type is used. The walking hearth type is used for heating or
heat treatment of special materials such as steel rods.
As the causes for reduction of the furnace’s heat efficiency, there are heat
losses due to consumption for heat keeping or heat increasing based on
external factors such as material waiting and rolling mill troubles as well as
heat losses such as exhaust gas heat losses that occur in the normal furnace
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operation. Care must be taken to keep the temperature constant and to rise
temperature because an unexpected large volume of heat value is required.
Additionally, effects of the rolling speed (heating furnace’s load rate) to heat
losses cannot be ignored.
Energy conservation measures are described below.
Fuel consumption (%)
a. Improvement of combustion air ratio
The combustion air ratio should be maintained adequately and the infurnace pressure controller should be adjusted to reduce the volume of
air entering in from the outside. Figure II-7-9 shows the relationship
between the air ratio and fuel consumption. For example, if the air ratio
is reduced from 1.5 to 1.2 at an exhaust gas temperature of 500°C, the
fuel can be reduced by 9%.
Figure II-7-9
Relationship Between Air Ratio and Fuel Consumption
b. Enhancement of exhaust heat recovery
If the heat transmission surface of the air pre-heater (recuperator)
becomes dirty, its performance is extremely degraded and fuel
consumption increases. Therefore, simple heat balance calculation
should be performed on a regular basis to maintain the heat transfer
efficiency at the initial stage of installation.
II-67
If the performance is not restored, the air pre-heater should be repaired,
reinforced, or replaced depending on the cause.
c. Low temperature extraction
If steel blocks are extracted from the heating furnace at a lower
temperature, fuel consumption decreases but electric power
consumption increases. Therefore, these effects should be fully analyzed
for extraction at the optimum temperature in order to achieve energy
conservation. In this case, attention should be paid to the skid mark. If
extraction at a low temperature is possible, reduction of fuel
consumption by 3 to 5 Mcal/t can be expected by lowering the
extraction temperature of 10°C.
d. Improvement of hot charging rate
The designed fuel consumption of the heating furnace that heats cold
steel blocks only is approximately 300 Mcal/t to 400 Mcal/t. On the
other hand, in factories with EAF producing deformed reinforcing bar,
there are many heating furnaces for rolling at a fuel consumption of 200
Mcal/t or below. The reason is that high-temperature steel blocks
produced in the continuous casting equipment are charged into the
heating furnace for rolling (hot charge rolling=HCR) or rolled by the
rolling machine (hot direct rolling=HDR).
To implement hot charging, it is of course desirable that the CC is close
to the heating furnace. However, there is a difference between the CC’s
capacity and the rolling mill capacity, 100% hot charging is difficult.
Therefore, a heat insulation box is normally provided to temporarily
store the high-temperature continuously cast billets as a buffer function.
The heat-keeping box is made of steel plates with lining of heat
insulation material and has a removable cover for loading/unloading the
billets.
Energy conservation by hot charging is approximately 20 Mcal/t per
100°C of charging temperature.
e. Prevention of heat losses due to radiation and heat transmission
For furnaces recently installed, the walls are covered with ceramic fiber
of a low specific heat. The heat insulation effect is excellent and the
accumulated heat volume is small. Thus, heat losses from furnaces walls
are improved.
Even though furnace walls of an existing furnace are made of bricks,
both heat radiation volume and accumulated heat volume can be
reduced by approximately 30 to 40% by lining a 50 mm thick ceramic
fiber on the inner walls of the furnace.
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f. Prevention of heat losses from the opening
If an opening is provided, heat in the furnace goes out of the furnace as
the radiation heat. Further, leakage of combustion gas results in heat
losses. Therefore, the opening should be minimized.
g. Prevention of heat losses from cooling water
For continuous heating furnaces, the cooling heat loss from the watercooling skid pipe occupied 10 to 15% of fuel consumption. To reduce
the cooling heat loss, the double heat insulation method for the skid was
developed. This method can be adopted for the existing furnaces as well
as newly installed furnaces and heat losses are down by half.
Figure II-7-10 shows an improvement example.
Figure II-7-10
Double Heat Insulation for Water-Cooling Skid Pipe
h. Improvement of the heat transmission efficiency in the furnace
Steel blocks in the furnace are mainly (approximately 95% or more)
heated by heat radiation of combustion gas (gas radiation of CO2 and
H2O and solid radiation of high-temperature fine carbon particles
contained in the flame). Therefore, the “optical thickness of gas” should
be sufficiently large and the furnace volume is required to meet the
specified capacity.
Whether the required furnace volume is reserved should be studied, and
if it is insufficient, elaborations such as changing the furnace shape by
providing a partition wall for promotion of heat transmission in the
furnace are necessary. Additionally, the high-temperature gas flows on
the upper part of furnace only, the gas temperature on the lower part
may be low, and the radiation heat transmission volume may be small.
Therefore, measures to improve uniformity of the in-furnace
temperature in the vertical direction should be studied.
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i.
Prevention of heat losses due to external factors
If the air-fuel ratio of the heating furnace is adequately controlled and
continuous operation is possible at a heating speed (t/h) within the
specified range, fuel consumption can be maintained in a very good
level.
However, in the actual operation, operation may have to be performed at
a higher or lower heating speed or heat may have to be kept for many
hours because of the relationship with the preceding and following
processes. As a result, the annual average fuel consumption may be
extremely poor.
If such a condition occurs, actions for removing the cause are required
and the production schedule itself may have to be changed or improved.
For example, improvement should be made so that the furnace can be
operated in a scheduled manner, by adjusting the production speed with
the preceding and following processes and taking actions against
troubles in the preceding and following processes. Additionally, criteria
for keeping the temperature constant and rising temperature of the
furnace should be specified for control.
Then, the heat value is improved very much. If there are multiple rolling
lines (and therefore multiple lines of heating furnaces) to produce
various products, the production capacity of the continuous casting
equipment often does not match the production capacity of the rolling
lines. Some rolling lines may have to be shut down frequently. If such a
condition constantly occurs and cannot be solved by adjustment of the
production schedule and operation procedure, measures such as
reduction of heat radiation losses and heat accumulation losses by
means of replacing the heat insulation material of the heating furnace
with ceramic fiber are indispensable.
3) Energy conservation through exhaust gas heat recovery
a. Heat regenerative type burner
If the air pre-heater is old and should be replaced, installation of the
regenerative burner should be studied.
b. Regenerative burner system
By repeating combustion and heat recovery alternately at an interval of
tens of seconds with a “pair” of burners A and B containing the heat
accumulating unit, a temperature efficiency of at least 85% (preheated
air temperature higher than 1,000°C) can be obtained. The reason is that
burner B is an exhaust port when burner A is performing combustion
and heat is exchanged between exhaust gas of burner A and the heat
accumulation unit of burner B. On the other hand, on burner A that is
II-70
performing combustion, heat is exchanged between the heat
accumulation unit and combustion air and high-temperature air is
supplied to burner A.
This system uses alumina refractory for the heat exchanging element
unit and the high-temperature parts are the burner and heat exchanging
element unit only. Since the exhaust gas line and air tube line are at a
low temperature, the system is compact. Also, the heat
recovery/combustion changeover valve is provided on the lowtemperature side, so wear is small as a feature and fuel can be saved by
30 to 50%. Additionally, despite that the preheated air temperature is
high, NOX is 150 ppm or below as an excellent feature.
Figure II-7-11 shows the regenerative burner system and Figure II-7-12
shows the preheated air temperature rise effect.
Furnace
body
Exhaust gas
Air
4-way changeover valve
Figure II-7-11
Regenerative Burner System
c. Sensible heat recovery from skid cooling water
If a heating furnace exhaust gas boiler is installed, heat recovery is
possible for preheating the supplied water.
II-71
d. Furnace exhaust gas boiler
Installation should be studied by considering reduction of the exhaust
gas volume as a result of fuel consumption reduction through hot
charging.
If the regenerative burner is installed, the exhaust gas temperature is 200
to 300°C. The merit of installing the exhaust heat boiler reduces and the
investment effect decreases.
Figure II-7-12
Preheated Air Temperature Rise Effect
4) Yield improvement and trouble reduction
Yield improvement results in energy conservation at the rolling processes
and the upstream processes. It is important to improve the yield by reducing
scale losses, crop losses, and mis-roll. If a trouble occurs in the rolling line,
fuel consumption of the furnace becomes low, the mis-roll rate increases,
and the yield is worsened. Therefore, it is important to reduce equipment
troubles. Trouble reduction is directly linked to energy conservation.
II-72
Grasping the Actual Status of Energy Consumption
First, we should recognize what process in manufacturing processes uses utilities such
as electricity, water, steam, compressed air and how they should be grasped.
(1)
Data collection in advance
Data should be collected in advance and input in Factory Energy Use Status
Table prepared by each factory (i.e. input the production volume and used
quantities of electricity, fuel, steam, water, and compressed air).
(2)
Prepare a graph showing the energy consumption
For example, a graph showing the electricity volume used in the factory should
be prepared as shown in Figure II-7-13.
(kWh)
2002
7.2
2003
Jan.
Feb. Mar. Apr. May. Jun.
Figure II-7-13
(3)
Jul.
Aug. Sep. Oct. Nov. Dec.
Electricity Volume Used in the Factory (Example)
Prepare a graph showing the production volume and energy intensity in
the factory.
For example, a graph showing the production volume and electricity
consumption should be prepared as shown in Figure II-7-14.
(4)
Enhancement of energy management
Measuring instrument should be installed for respective utilities so that periodic
measurement, data collection, and management of the energy volume used in the
factory will be possible.
II-73
(kWh)
(Remarks)
Production volume
Production volume
Electricity consumption (kWh)
/Production volume
2003
Jan.
Figure II-7-14
7.3
Feb.
Mar.
Production Volume by Electricity Consumption (Example)
Extraction of Problems by Energy Conservation Check List
When graphs of the energy consumption data collected, production volume, and
energy consumption and intensity are available, check should be made according to
the check list given below to extract problems in energy conservation.
1) Electricity management
a. How to determine the contracted electricity and the system of the electricity
charge should be understood.
b. The contracted electricity and maximum demand electricity as well as the
power consumption used should be reduced.
c. Isn’t electricity loss found in comparison of monthly data with those of
previous year in checking the graph showing the electric power
consumption?
d. Is electric power consumption being improved?
2) Energy conservation check points for major equipment
a. Electricity receiving/transforming equipment
• Isn’t there any transformer that can be shut down in the nighttime or on
holidays?
• Is the power factor improved?
b. Air compressor
• Isn’t there leakage from piping?
• What about ventilation? Isn’t the air compressor intake temperature high?
• Isn’t it possible to drop the delivery pressure of the air compressor?
II-74
• What is the air compressor’s capacity adjusting system?
• Is the air compressor shut down when it is not used?
• What is the operation to be performed against variation of the used
volume?
• Has introduction of controlling the number of air compressors in service
been studied?
c. Blower and pump
• Are they shut down when they are not necessary?
• Doesn’t the flow rate or pressure have a too large margin?
• Is the flow rate adjusted, and by what?
• Was changing the number of revolutions or impeller cutting studied?
d. Lighting
• Is lighting turned off when or where it is not required?
• Is daylight used and is lighting turned off?
• Is illumination adequate and is it measured?
• Was adoption of high-efficiency lighting apparatuses studied?
e. Air-conditioning equipment
• Can’t the heat load generated from components and outer air load be
reduced?
• Can’t heat insulation for the building and daylight shielding be improved?
• Is the set value for room temperature adequate?
• Can’t the air conditioner running time be reduced?
• Isn’t air conditioning run in unnecessary spaces?
• Is the filter cleaned periodically?
• Upon renewal, new installation, or expansion, was adoption of the ice heat
storage system studied?
II-75
7.4
Energy Conservation Approaches
After problems are extracted according to the Energy Conservation Check List,
approaches for solving the problems are required.
The following are the energy conservation approaches for problem solution.
Energy conservation should be studied according to these approaches. The result of
studying energy conservation should be forwarded to implement the energy
conservation actions based on the economical evaluation with use of the energy
conservation effects and equipment investment.
Examples of approaches:
Approach 1: Reduction of Maximum Electric Power with a Demand Controller
Approach 2: Power Factor Improvement Method
Approach 3: Energy Conservation Technique for Air Compressors
Approach 4: Energy Conservation and Cost Reduction through Control of the
Number of Air Compressors in Service
Approach 5: Control of the Number of Revolutions for Blowers and Pumps
Approach 6: Application of High-efficiency Lighting Apparatus
II-76
Approach 1:
1.
Reduction of Maximum Electric Power with a Demand Controller
Operation of Demand Controller
The demand contract is a contract system based on the maximum electric power.
Consumption once a large value occurs, this value is the contracted electric power for
coming one year. Reduction of the contracted electric power from 612 kW to 522 kW
by suppressing the maximum electric power is described below.
If it is estimated that the actual electric power consumption is likely to exceed the
targeted electric power of 522 kW, individual shutdown commands 1 to 3 are
sequentially issued to shut down the equipment not critical in the factory and suppress
the value below the targeted electric power.
After 30 minutes, the stopped equipment started up automatically (sequentially by
timers) to achieve demand control and operation in unmanned and automatic mode.
Power company
Targeted electric power 522 kW
(set value)
Monitoring of the maximum
electric power
Electricity
used
30 minutes
Factory
Demand controller
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2.
Schematic Diagram of Demand Controller
The factory receives electricity from the power company. This system monitors the
maximum electric power at the electricity receiving point as shown below and shuts
down the non-important equipment in the factory with the shutdown signals from the
load shutdown control panel to suppress the peak electric power. By suppressing the
maximum electric power (peak), the contracted electricity can be maintained low and a
significant amount of electricity charge can be reduced.
Power company
Shutdown
Demand
command
Shutdown control panel (newly installed)
controller
(newly installed)
2 signals
3 signals
3.
Patlite indicating
running
command 3
Individual
shutdown
command 1
Factory
2 signals
Individual
shutdown
Monitoring of
the maximum
electricity
Individual
shutdown
command 2
Detector
(newly
installed)
Exhauster
Control panel
(modified)
Exhauster 55 kW
No. 1 to 3 shorting
2.25 kW
No. 1 to 3 exhaust fans
(modified)
11 kW × 3 sets
Blower control panel
(modified)
Blower 55 kW
Screw conveyer
1.5 kW
57.25 kW
33 kW
56.5 kW
Investment Performance by the Demand Controller
If it is assumed that the present contracted electric power of 612 kW is suppressed to
522 kW by execution individual shutdown commands 1 and 2 in the table below, the
amount of introduction merit is 1.45 million yen annually.
Since a peak may occur any time in the present status (non-monitoring state), it is
recommended to introduce the demand controller.
Once the demand controller is introduced, the maximum electricity can be easily
managed and therefore it is easy to implement energy conservation measures.
Equipment to
be shut down
Saved
electricity
Individual shutdown
command 1
Exhauster
57.25 kW
Individual shutdown
command 2
Exhaust fan
33 kW
Individual shutdown
command 3
Blower
56.5 kW
Investment effect/year
Total investment
effect
57.25 kW × 1575 yen/kW × 0.85 × 12
= 919,721 yen
919,721 yen
33 kW × 1575 yen/kW × 0.85 × 12
= 530,145 yen
1,449,866 yen
56.5 kW × 1575 yen/kW × 0.85 × 12
= 907,762 yen
2,357,538 yen
If up to individual shutdown command 3 is implemented, the effect is approximately 2.3
million yen annually.
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Approach 2:
1.
Power Factor Improvement Method
If the present maximum electricity is 210 kW and the power factor is 98%, the capacity
required for the capacitor for improvement to a power factor of 100% is as follows:
210 kW
Capacity required
for the capacitor
Capacity required for the capacitor
2.
Installation of the power factor improving capacitor
Power company
6600 V
Existing capacitor
Existing
30 kVA × 2 sets
37 kW
Newly installed 30 kVA
Low-voltage capacitor
Dust collecting
blower
II-79
Approach 3:
Energy Conservation Technique for Air Compressors
(1) Renewal to a new machine (high-efficiency air
compressor)
(4) Reduction of the delivered air pressure and
use-end pressure
<Expected effect> Energy conservation of 7 to 15% (per
air compressor)
<Expected effect> If a delivery gauge pressure of 0.69
MPa (7 kgf/cm2) is dropped to 0.59
MPa (6 kgf/cm2), energy conservation
is approximately 9%.
(2) Adoption of the system controlling the number
<Expected effect> Realization of the minimum necessary
(3) Improvement of installation (intake) condition
Measures for
reduction of
pressure losses
• Lowering the intake air temperature
• Reduction of the intake resistance
<Expected effect> Realization of operation with optimum
energy conservation
Improvement
measures
a. Periodic maintenance of auxiliary
equipment (filters, etc.)
b. Loop piping and review of pipe
diameter
a. Review of the intake port and
exhaust port
b. Optimization of the ventilation fan
capacity
(5) Repair of air leak from piping
<Expected effect> If 10 positions of 1 mm dia. hole
are repaired, energy conservation
corresponds to a 5.5 kW air
compressor.
II-80
Approach 4:
Energy Conservation and Cost Reduction through Control of the Number of Air Compressors in Service
Number of air compressors in service control system
Individual supply system (before improvement)
Controlling the number of
Shut down
Reciprocal
Shut down
Screw
Factory C
Factory C
Factory B
Compressed
air tank
Factory B
Factory E
Screw
Factory E
Screw
Load/unload operation
prerequisite operation
Application
Air Compressor capacity
II-81
Time
Factory C only
Electricity consumption per day
kW/day
Load
operation
Unload
Shut down
Unload 20A
Reciprocal type
Unload
kW/day
Factory B only
Operation
Load
25A
Unload 20A
Screw type
Load
operation
Shut down
Time of load
operation and
shutdown
Unload
kW/day
Operation
Factory E only
Load
50A
Unload 41A
Screw type
kW/day
Operation (load: 51A-55A)
Load
operation
Time
kW/day
Shutdown
Unload
kW/day
Operation (load: 65A-??A)
Operation
Load
operation
Electricity
consumption
per day
Miscellaneous
kW/day
Load
operation
Time
kW/day
Shutdown
Screw type
Total
(265 days)
day
Total
(265 days)
yen
Electricity charge
(@18 yen/kWh)
Electricity charge
(@18 yen/kWh)
Cost reduction effect
1,467,300 yen/y
day
yen
Approach 5:
Control of the Number of Revolutions for Blowers and Pumps
If the intake air flow rate is Q m3/min, the pressure is H mmAq, and the efficiency is η,
the required electricity P kW for the blower is:
P = QH/6120η.
If the number of revolutions is Nrpm and the constant is k, the relationship between the
number of revolutions and power is as follows:
Q = k1N, H = k2N2
P = k3N3
Pressure (HmmAq)
The outlet damper is
In the figure at right, if the outlet damper
narrowed down.
is narrowed down to reduce the air flow
rate of the blower that is running at the
number of revolutions N1 and air flow
rate Q1 to Q2, the resistance curve of
piping changes from OR1 to OR2, power
changes from rectangle OH1R1Q1 to
OH2R2Q2. Power does not decrease very
much when the air flow rate is reduced
Flow rate Q (m3/minute)
by narrowing down the damper.
In contrast, N1 is reduced to N2 by controlling the number of revolutions, power reduces
from the area of rectangle OH1R1Q1 to the area of OH3R2Q2.
As you see, controlling the number of revolutions is more advantageous that controlling
the outlet damper in energy conservation.
Generally, an inverter unit (VVVF) is adopted for controlling the number of revolutions.
II-82
Application of High-efficiency Lighting Apparatuses
Incandescent lamp
Type of light source
Fluorescent lamp
Lamp
Power
HID lamp
Input
Power
Total
luminous flux
(1)
Color
Average color Rated life
Overall
efficiency (2) temperature rendering
Incandescent lamp
index [Ra]
Incandescent lamp
General lighting
Ball bulb
Crypton lamp
Halogen lamp
Single-ended mold
With infrared radiation reflex film
Small type (low-voltage type)
Double ended mold
Fluorescent lamp
Bulb type fluorescent lamp
Electronic lighting – bulb color
Electronic lighting – daylight white
color
4-tube type – daylight white color
General fluorescent lamp
White
Three-wavelength type – daylight
white color
High-frequency Hf) type
Compact type
HID lamp
Color rendition
improved highpressure sodium lamp
General highpressure sodium
lamp
Metal halide lamp
Fluorescent
mercury lamp
Hf type threewavelength
fluorescent lamp
Three wavelength
type fluorescent
lamp
General white
fluorescent lamp
Compact
fluorescent lamp
Bulb type
fluorescent lamp
Halogen lamp
General
incandescent lamp
Overall efficiency (1m/w)
Approach 6:
Fluorescent mercury lamp
Metal halide lamp
Same as above (double ended mold)
High-pressure sodium lamp
Same as above (improved rendering type)
II-83
List of Attachments
Attachment I-1: Philippines (COUNTRY REPORT ON ECONOMIC AND ENERGY
SITUATION)
Attachment I-2: The Energy Conservation Technology Realized in Japan Steel
Industry: Presentation Slide List
Attachment I-3: The Energy Conservation Technology Realized in Japan Steel
Industry
Attachment I-4: Information Required for ASEAN Industry Audit (EAF Steel
Industry)
Questionnaire (EAF Steel Industry)
Attachment I-6: Data and Information on Philippines prepared by ACE
Philippines
The Philippines is important to world energy markets because it is a growing consumer of
energy, particularly electric power, and a major potential market for foreign energy firms. It
also may become a major producer of natural gas.
BACKGROUND
The new millennium has brought about important changes to the island nation of the Philippines.
With the installation of former Vice-President Gloria Macapagal-Arroyo on January 20, 2001,
the Philippines has undertaken an economic transformation, deregulating its energy sector and
offering new incentives for foreign investment. President Macapagal-Arroyo, a trained
economist, came into power when former President Joseph Estrada was forced from office.
Under Macapagal-Arroyo, key economic indicators, including GDP growth rate, foreign
investment, and inflation have trended favorably. But while a certain degree of success has been
achieved, the country’s fiscal deficit, declining currency, and regional inequality are still
problematic. A major natural gas discovery in the Malampaya field, officially inaugurated in
October of 2001, coupled with increasing military support from the United States could prove to
have a significant impact on the country's future.
ECONOMY
Real Gross Domestic Product (GDP) grew by 4.6 % and Gross National Product (GNP) by 5.2%
in 2002. This increase exceeded both Philippine and international expectations. Much of the
country's renewed economic vibrancy results from improved agricultural yields with a positive
growth of 3.5%, as well as from an increase in domestic consumption brought about by curbed
inflation. Growing confidence in the Macapagal-Arroyo administration, as well as the excitement
surrounding the sizable Malampaya natural gas field also have had a positive effect. Foreign
investment shot up 171%, to $3.4 billion in 2001, as investors gained confidence in Manila's
political climate as well as a newly deregulated and privatized energy sector.
In services, benefits of deregulation in the telecommunication sector grew robustly by 8.9%.
Trade continues to benefit from strong consumer demand, as giant local retailers opened up new
malls in regions outside Metro Manila.
With the economy on healthy footing in 2002, it was forecasted that a sustained GDP growth
would be 4.2 – 5.2 percent and GNP by 4.5 – 5.4 percent. Agriculture is expected to pace 3 – 4%
in 2003 as the government continues to implement El Nino mitigating measures and other
productivity-enhancing measures like distribution of high yielding seeds.
In industry, policies that will boost mining, housing and Small to Medium Enterprises (SME’s)
will support industrial growth in 2003 by 3.4 – 4.4%. Tariff rates for capital goods and other
inputs not locally produced have been reduced to one percent in December 2002; this should
provide buffer to manufacturing sector as they cope with expected oil price increases.
Ⅱ－A－1
Services is expected growing 5.2 – 6.3%, led by telecommunication, trade and private services.
Policies to liberalize air transportation, and measures to boost housing should further keep
services healthy. In banking and finance, the implementation of the Special Purpose Vehicle Act
will pave the way for greater financial activity in 2003 and over the medium term. Continued
macroeconomic stability, especially those relating to fiscal policy, will be important to sustaining
economic growth.
ENERGY
The Philippines' energy sector is relatively dynamic. Major reforms are underway, as are projects
to electrify isolated villages, to reduce the Philippines' dependence on imported oil, and to
change the relative composition of fuel consumption. The Philippine Energy Plan (PEP) for the
period 2003-2012 complements and reinforces the macroeconomic goals of the arroyo
administration to promote balanced economic growth, poverty alleviation and a market based
energy industry. With this macroeconomic goals as basis, Department of energy sets down the
goals for the energy sector which is as follows: 1) Stable and secure energy supply 2) Wider
access to energy supply 3) Fair and reasonable energy prices 4) Clean and efficient energy fuels
and infrastructures 5) Enhanced consumer welfare and protection 6) Technology transfer and
manpower development 7) Job creation from energy activities
OIL
The Philippines began 2001 producing an average of only 1,000 barrels per day (bbl/d) of oil.
Production jumped to 20,000 bbl/d by October, and reached 22,000 bbl/d by year's end. This
dramatic increase was due primarily to the discovery of new deep-sea oil deposits beneath the
natural gas-bearing structures in the Malampaya field. But while new hydrocarbon discoveries
will significantly reduce the Philippines' oil import bill, the country is still a highly dependent net
oil importer. The Philippines consumed 356,000 bbl/d on average in 2001 and produced 8,460
bbl/d, resulting in net oil imports of 347,540 bbl/d.
This dependence on imported oil makes the Philippine economy vulnerable to sudden spikes in
world oil prices. For example, the Philippine oil import bill increased over 70% during the first
eight months of 2000. The Philippine Institute of Petroleum estimates that local oil companies
lost between 3.5-4.0 billion pesos in 2000 due to their inability to adjust petroleum prices to fully
reflect the increased cost of imported oil and foreign exchange depreciation. Oil consumption is
expected to increase by 5.9% annually over the next several years as economic growth increases
demand in most sectors. Oil demand for power generation, however, is expected to decline by
over 50% by 2011, as the government retires aging oil-fired electric power plants and switches to
natural gas and alternative power sources.
Despite small proven oil reserves, the Philippines had enjoyed a recent wave of optimism
amongst domestic and foreign drillers. In October of 2001, exploration underneath the
Malampaya gas field revealed an estimated 85 million barrels of oil condensate. Shell
Philippines Exploration (SPEX) has committed $4.5 billion to the combined oil/natural gas
project, and anticipates potential crude oil production of 35,000-50,000 bbl/d by 2003. In
addition, six new offshore explorations have commenced in the Malampaya basin, led by Nido
Petroleum, Philippines National Oil Company Exploration Corp., Trans-Asia Oil, Unocal Corp.,
Ⅱ－A－2
and Philodril. Also, Trans-Asia has conducted exploratory drilling at the San Isidro well in the
East Visayan Basin. This area may contain as much as 60 million barrels of oil according to
some estimates. The Philippine government estimates reserves of up to 246 million barrels in
northwestern Palawan, and 37.4 million barrels in the Minduro-Cuyo basin. The Philippines
National Oil Company also expects to begin drilling in Lagao, Lambayong province in July of
2002, seeking an estimated 561 million barrels of oil.
Refining & Downstream
The Philippines' downstream oil industry is dominated by three companies: Petron, Pilipinas
Shell (Royal Dutch/Shell's Philippine subsidiary), and Caltex (Philippines). Petron is the
Philippines' largest oil refining and marketing company. The company was a wholly owned
subsidiary of the state-owned Philippine National Oil Company (PNOC) until 1994. Currently,
the Philippine government and Saudi Aramco each own 40% of the company, with the remaining
20% held by portfolio and institutional investors, making it the only publicly listed firm amongst
the three oil majors. Petron's Limay, Bataan refinery has a crude processing capacity of 180,000
bbl/d. Petron's market share at the start of 2002 was 38.3%, a 3.4% gain over 2001. Caltex
(Philippines), a subsidiary of Caltex, the Texaco-Chevron joint venture based in Singapore,
operates a 86,500-bbl/d refinery, two terminals, and more than 1,000 gasoline stations
throughout the Philippines. Its market share is 23.8%, a 2.2% gain over 2001. Pilipinas Shell has
a 153,000-bbl/d refinery, one of the largest foreign investments in the Philippines, and operates
some 1,000 Shell gas stations. Shell's market share is 38%, a 4.7% gain over 2001. Overall,
Philippine refineries run at around 80% of capacity, and there is not a great deal of demand for
new refinery construction.
Oil market deregulation, beginning in 1998, continues to have a significant effect on the industry.
Since deregulation started, 62 new firms, including TotalfinaElf, Flying V, SeaOil (Philippines),
Eastern Petroleum, Trans-Asia Energy and Unioil Petroleum Philippines Inc., have invested $13
billion and built approximately 312 new retail stations. By the end of 2000, the new players had
amassed 10.4% of the local oil market. These new entrants have organized the "New Players
Petroleum Association of the Philippines" (NPPAP), and have been credited with putting
significant downward pressure on retail fuel prices in the country. Currently, the Philippines
enjoys the lowest fuel prices of any non oil-exporting Asian country. However, price swings
associated with deregulation and higher world oil prices have angered many impoverished
Filipinos. Despite public calls for explicit price controls, the government has remained
committed to deregulation . In December 1999, the Supreme Court upheld the constitutionality
of the country's deregulation program. The NPPAP has shown some opposition to the program,
claiming its provisions are insufficient as new players have not been able to capture at least 30%
of the market.
Major downstream developments on the horizon include a $600 million naptha cracker plant to
be built by the Philippine National Oil Company in conjunction with Brunei's Mashor Group and
Malaysia's Petron. The plant, which most likely will be supplied with natural gas from the
Indonesian Dongi field, would enable the Philippines to become an independent producer of
advanced petrochemical products and plastics. The government has also called for a new LNG
receiving terminal to be built in Bataan to receive imported natural gas.
Ⅱ－A－3
In January 2000, the Philippines' Department of Energy announced plans to accelerate the phase
out of leaded gasoline. Leaded gasoline is banned already in Manila.
NATURAL GAS
The Philippines has 3.693 trillion cubic feet (Tcf) of proven natural gas reserves, but no
significant production at the present. While in the past the gas sector has not been developed
extensively, the government has made expanding gas use a priority, particularly for electric
power generation, in an effort to cut oil import expenses. The government expects total domestic
natural gas production to increase annually by 146.4 billion cubic feet (Bcf) to reach 1.5 Tcf by
2011.
The impetus for the dramatic change in the country's natural gas sector is the Malampaya
offshore field. Malampaya is the largest natural gas development project in Philippine history,
and one of the largest-ever foreign investments in the country. Shell Philippines Exploration
(SPEX, operator, with a 45% stake), Texaco (45%), and the PNOC (10%) have come together to
form the Malampaya Deepwater Gas-to-Power Project. The Malampaya field is located in the
South China Sea, off the northern island of Palawan, and contains an estimated 2.6 Tcf of natural
gas. A 312-mile (504-kilometer) pipeline links the field to three power plants in Batangas. The
pipeline is among the longest deep-water pipelines in the world, with half of its length more than
600 feet deep. With completion of the sub-sea pipeline and conversion of the first of three power
stations, (San Rita, operated by British Gas and Philippines 1st Gas Corp.), the Malampaya
project was officially inaugurated on October 16, 2001. Gas from Malampaya eventually will
fire three power plants with a combined 2,700-megawatt (MW) capacity for the next twenty
years and will displace 26 million barrels of fuel oil, according to the government. The
BG/Philippines 1st Gas Corp. partnership has announced that it expects to have a second station,
the San Lorenzo facility, converted for natural gas use by 2003. The government has publicly
considered selling a 10% share in the Malampaya project to the public; however no date has yet
been set for the IPO.
An $80 million joint venture between PNOC, RoyalDutchShell and Brunei's Mashor Group, to
expand the pipeline from Batangas to Metro Manila is being planned. This pipeline would supply
gas to additional power plants as well as the industrial and commercial sectors. PNOC has also
commenced plans with Malaysian Petronas to build a 620-mile (1000-kilometer) line between
the two countries, completing one of the five components in the developing ASEAN power grid.
A number of foreign and domestic firms also are looking at onshore and offshore exploration
projects in the Philippines. A consortium of five companies (PNOC as operator holding 78.75%,
and four Australian companies) is exploring natural gas fields on and around Fuga Island under
Geophysical Survey and Exploration Contract 84. This area has been estimated to contain up to 5
Tcf of natural gas, but this is still unconfirmed. The Fuga 1 exploration well was plugged and
abandoned in June 2000 after producing no hydrocarbons. This area, to the north of Luzon, is
still being considered, however, for a pipeline to Taiwan if a large enough gas find comes into
production. Also, exploration is soon to begin in Southern Cebu by two undisclosed American
firms, as well as in the Sultan Kodurat province by undisclosed European and Middle Eastern
firms. Three natural gas fields were closed down in 2001. Fields in the Tukankuden and the
Cotabato Basin were shut down due to the proximity of rebel soldiers, while another field in
Ⅱ－A－4
Victoria, Tarlac, was closed because the gas discovered was too saturated with water for
commercial production.
The Philippine government is developing a policy framework for the emerging gas industry that
foresees the government's role as that of facilitator while attempting to ensure competition.
Domestic development is to be encouraged, but competition from imported gas also is to be
allowed. Gas supply to wholesale markets will have market-set prices, while prices for captive
markets and small consumers will be regulated.
COAL
Development of new natural gas projects in the Philippines has come largely at the expense of
the country's struggling coal industry. Despite producing 1.49 million short tons in 2000, PNOC
announced that it plans to close its national coal subsidiary. The government also announced that
many of the country's coal-fed power plants are being considered for conversion to natural gas,
including the 600-MW Calaca plant south of Manila. Napocor, the National Power Company,
has followed suit, ordering its coal-fired plants to operate at diminished capacity in order to
allow more capacity for natural gas-fired plants. The country has decided to restructure the use of
its 366 million short tons of estimated coal reserves, which is mostly low-rank lignite, for
processing in smaller "clean coal" plants, for eventual end-use as household fuel, and briqueting.
In the Department of Energy's 2002-2009 energy plan, three new smaller-scale plants are
planned, including a $62 million 50-MW power plant in Isabela, which should be completed by
2005.
The Philippines consumed 9.5 million short tons of coal in 2000, eight million short tons of
which were imported. Indonesia and China are major exporters of coal to the Philippines, and
both have been in negotiations with Manila about increasing their quotas. There has been very
little new exploration for coal in the Philippines since a methane explosion in 1997 killed many
workers and caused public hostility to the industry. New plants have faced increasing opposition
from both agricultural and church groups.
World Trade Organization (WTO) regulations require that the Philippines lift import restrictions
on coal. Since the 1970s, when the National Coal Authority was created, Philippine coal
importers have been required to obtain a government certificate of compliance before importing
coal, allowing the authorities to force importers to buy domestic coal each time they purchased
coal from abroad. President Macapagal Arroyo has committed to honoring the international coal
supply contracts approved by the previous government.
ELECTRICITY
Energy production in the Philippines is concentrated in the electricity sector. Geothermal power
accounts for the country's largest share of indigenous energy production, followed by
hydropower, coal, oil and gas. The Philippine government has made shifting from reliance on
imported oil a major goal, and is pushing the current boom in natural gas-fired electricity
development.
Ⅱ－A－5
The most significant event in the Philippine energy industry in recent years has been the Power
Industry Reform Act of 2001. After 7 years of congressional debate and court cases, the Act
came into force on June 26, 2001. The act has three main objectives: 1) to develop indigenous
resources; 2) to cut the high cost of power in the Philippines; and 3) to encourage foreign
investment. Passage of the Act sets into motion the deregulation of the power industry and the
breakup and eventual privatization of state-owned enterprises. Actual sale of state assets and
implementation of the program is not likely to take place until late 2002 or 2003.
The legislation requires the state-owned utility National Power Corporation (Napocor) to breakup its vertically integrated assets into smaller sub-sectors such as generation, transmission,
distribution and supply in order to prepare for eventual privatization. The result will be a system
in which privatized generators would sell directly to private distribution companies. Working
with consultants from Hunton and Williams, Napocor has designated two new subsidiary
companies designed solely for eventual privatization. These two firms, Transco and Psalmcorp,
will entail the state's high voltage transmission lines and infrastructure, and power plants,
respectively. The government also will sell off its share of Meralco, a smaller company that
serves Manila and the immediate surrounding area by buying power from various Independent
Power Producers (IPPs).
Napocor will need to transfer its existing power purchase obligations to private distributors, and
also to renegotiate high-priced contracts. The cost savings lie in the fact that private distributors
will likely be unwilling to enter into agreements that are above market rates. There are other
financial incentives for the government as well. Napocor's huge debt and $9 billion in power
purchase agreements are unsustainable, and the government must already contribute $300
million per year to keep Napocor afloat. Finally, the government needs more foreign investment
in the sector as demand is projected to outpace supply by around 2005 at current rates of
investment.
In order to make the sale of Napocor more attractive to investors, the government has absorbed a
significant amount of Napocor's $6.7 billion debt. In addition, the $9 billion in power purchase
agreements with IPPs also will be sold off. The transmission system will be transferred to an
independent company, Transco, which is scheduled for privatization by mid-2002. Privatization
of Transco, however, is contingent upon congressional approval for the rules governing a new
wholesale spot market as well as a reduced transmission tariff, or "wheeling charge". According
to deregulation laws, no one potential buyer will be allowed to own more than 30% of the
Philippines' generating assets.
Electricity demand in the Philippines is expected to grow by around 9% per year through 2009,
necessitating as much as 10,000 megawatts (MW) of new installed electric capacity. Current
contracts will provide about half of that amount, with the remainder expected to be filled once
the market deregulates. Medium-term increases in power demand are to be satisfied largely by
the three gas-fired plants (Ilijan, Santa Rita, and Sucat) that will be linked to the Malampaya gas
field, plus the coal-fired 470-MW Quezon Power Project that was inaugurated in June 2000. The
Korea Electric Power Corporation (KEPCO) plans to complete the 1,200-MW Ilijan plant in
2002. KEPCO will run the plant under a build-operate-transfer scheme for 20 years, after which
ownership will revert to Napocor. Minority stakeholders in the plant are Southern Energy of the
Ⅱ－A－6
United States (20%) plus Mitsubishi (21%) and Kyushu Power (8%) of Japan. First Gas Power
completed its 1,020-MW plant at Santa Rita in August 2000, with the plant running on
condensate until gas becomes available. First Gas Power's subsidiary FGP Corporation is
building a 500-MW power plant nearby the First Gas facility in Santa Rita, in Sucat. Operators
are expected to begin by 2006.
Other power facilities planned, under construction, or recently completed include four small
hydroelectric plants with a total capacity of 650 MW in the Mindanao region and three small
diesel-fired plants in Oriental Mindoro operated by Southern Energy. The CE Casecnan Water
and Energy Company (a subsidiary of California Energy International) is constructing a
multipurpose irrigation and 150-MW hydroelectric facility in Luzon.
Southern Energy is the Philippines' largest IPP, operating five power plants in the country.
Southern's new coal-fired Sual plant began commercial operation in late 1999. The 1,218-MW
plant is located about 130 miles north of Manila, and reportedly is the nation's largest and
lowest-cost electricity producer. Napocor is the sole purchaser of Sual electricity.
Several power-generating facilities also are under extensive rehabilitation. The 100-MW Binga
hydroelectric plant in Itogon, Benguet has been under renovation since 1993 following damage
from a 1990 earthquake. Due to political factors, this renovation has so far been unsuccessful,
with the dam in worse shape now than in 1993. A larger project is the $470 million contract with
Argentine firm IMPSA (Industrias Metalurgicas Pescarmona Sociedad Anonima ) to rehabilitate
and operate the 750-MW Caliray-Botocan-Kalayaan (CBK) power complex in Laguna, south of
Manila. The CBK complex is the grid regulator in Luzon, and as such is able to transmit power
to other plants on the grid in the event of breakdowns. IMPSA, in conjunction with new partner
Edison Mission Energy of the United State, was able to get a performance undertaking guarantee
despite Napocor's and some government officials' objections, facilitating long-delayed financing
of the project.
In March 2000, Texas-based El Paso Energy International and Hawaiian Electric Industries
formed a 50-50 joint venture to own and operate five power plants now owned by East Asia
Power Resources Corporation, a public Philippine company. The total generation capacity of the
venture's holdings will be 390 MW. The oil-fired plants are located in Manila and Cebu.
Volatility in electric power prices has angered many Filipinos, who blame the Power Industry
Reform Act of 2001. The Act calls for an Energy Regulatory Board, which reviews and approves
applications by the National Power Corporation for price increases. Controversy over pricing
still exists, however, as the Association of Philippine Electric Cooperatives demonstrated in May
of 2001 with an organized blackout to protest a 30 centavo rate increase instigated by Napocor.
The Philippines, due to its geography, has problems linking all of its islands together into one
grid and ensuring availability of electric power to the remaining 9,708 villages without electricity.
The government has set a target date of 2004 for electrification of all these villages through the
14-billion peso "O-Ilaw" program, and also is taking steps to link together the country's three
major power grids (Luzon, Visayas, and Mindanao). As of March, 2002, the government claims
Ⅱ－A－7
the project is 85.6% complete. Where it is not economical to link small islands' grids into the
national grid, separate local systems are being established around small generating plants.
Renewables
The Philippines is the world's second largest producer of geothermal power, with an available
capacity of 1,931 MW, according to the Philippine government. The government would like to
bring on another 990 MW, bringing capacity to 2,921MW, and exceeding the U.S. capacity of
2,775 MW. Geothermal power currently makes up around 16% of the Philippines' installed
generation capacity, most of which has been developed by the PNOC - Energy Development
Corporation (PNOC-EDC). Privatization of PNOC-EDC is expected in the near future, with
several firms already expressing interest. PNOC-EDC bought Napocor's geothermal assets in
March 2001. Kyushu Electric company is in a joint venture with PNOC-EDC to develop a 40MW geothermal plant in Sorsogon, Albay province, and Marubeni of Japan has expressed its
intent to build the 100-MW Cabalian geothermal plant in Leyte. California Energy's Philippine
unit is working with PNOC to develop three new geothermal power plants in Leyte, producing a
total of 540-MW of electricity. Plans are underway to develop nine new facilities in Luzon,
ranging from 20 MW to120 MW that will eventually bring a total of 440 MW of geothermal
energy to the grid. By 2004, the new 40-MW Mambucal and 40-MW Rangas power stations in
Dauan, Negros Oriental are expected to come online.
Besides geothermal, the Philippines also is exploring the use of other renewables for electricity
generation, particularly in the country's unelectrified villages. In December 2000, WorldWater
Corp. signed an agreement with Cebu Electric Cooperative to provide 1,200 homes with solar
electrification. In March 2001, the Philippine and Spanish governments, in conjunction with BP,
agreed to a $48 million contract to bring solar power to 150 villages. BP and the government of
Australia also have partnered with the Philippines to supply solar power to rural villages,
bringing 1,145 solar-powered systems to 52 new municipalities. New solar-powered facilities
were also inaugurated for villages on Samal Island on December 7, 2001.
The Philippines appears to have a strong potential for wind farming. The United States
Department of Energy wind mapping survey estimates that wind resources in the Philippines
have a power generation potential of as much as 70,000 MW, seven times the country's current
power demand. Garrad Hassan Ltd. of the United Kingdom has expressed interest in a $220
million wind power pilot project. Another wind power project is the 40-MW, PNOC-EDC
Northern Luzon project in Ilocos Norte, scheduled to begin operations in 2002. PNOC and the
Japan Bank of International Cooperation also plan to build a $64.7 million, 40-MW wind farm in
Burgos. The Burgos facility will be the country's first commercial wind farm, and may possibly
be connected by a spur line to the Luzon Island power grid. This project is the first in a series of
three to add 120 MW of wind power to the NAPCOR grid. A biomass waste-to-energy plant is
planned for Negros Occidental that would use 450 tons of municipal waste and bagasse per hour.
Nuclear
In March 2000, the government announced that it would build a 600-MW nuclear power plant
similar to the Bataan plant by 2020. However, the Bataan plant was declared inoperable due to
its location on an earthquake fault, and the government continues to pay $250,000 per day to
Ⅱ－A－8
service the debt on the inoperable plant. The Triga Research Reactor, which dates from 1963, is
to be replaced with a new 20-MW research reactor. However, though as it may say, energy from
Nuclear sources is very unpopular proposition among Filipinos.
Ⅱ－A－9
The Energy Conservation Technology Realized in Japanese Steel Industry
Presentation Slide List
Ｎｏ．
Ｔｉｔｌｅ
Ｎｏｔｅ
1
The Energy Conservation Technology Realized in Japanese Steel Industry
2
Main Activities of ECCJ
3
Trends of Energy Consumption (Final Energy Consumption by Sector)
4
Why did the manufacturing industry of Japan succeed in the energy conservation after
Cover Sheet
the Oil Crisis?
5
Trends of Crude Steel Production of EAF in Japan
6
Activity Incentives for Energy Conservation
7
Trends of EAF Operation Data in Japan
8
Example ot Trend in Opereation Indexes of EAF
9
Example of the Energy Items in Japan's Mini Mill
10
Several Energy Saving Technology in Material Flow Chart
11
Energy Conservation for EAF-Mini Mill Factory 1) 1-1) a)
12
Energy Conservation for EAF-Mini Mill Factory
b)
13
Energy Conservation for EAF-Mini Mill Factory
c)
14
Energy Conservation for EAF-Mini Mill Factory 1-2) 2) 3)
15
Conceptual Drawing of Heat Balance at EAF
16
Example of Heat Balance in EAF
17
Influence of Oxygen and Reheat on Power Consumption
18
Example of Heat Balance in EAF (With Al ash)
19
Secondary Conductive Arm
20
Relationship between Power Consumption and the Time from Tapping to the End of casting
21
Hot Recycling of EAF Slag (Less slag-off after tapping)
22
Several Type in Recent Scrap Preheating
23
Shaft Furnace A (2 Finger Type)
24
Shaft Furnace B
25
Effect of VVVF
26
Regenerative Burner of Ladle
27
Concept Drawing of Regenerative Burner
28
Regular Industrial Furnace
29
High-performance Industrial Furnace (1)
30
31
High-performance Industrial Furnace & Regular Industrial Furnace
32
Demonstration of energy conservation effect by High-performance Industrial Furnace
33
Effect of Heat Pattern Change in Furnace
34
Transition of Total Energy Intensity (Crude oil equivalent)
35
Energy Cast Ratio in Small and Medium Industries (Japan)
36
More information
Ⅱ－A－10
The Energy Conservation Technology
Realized in Japanese Steel Industry
February, 2003
〔ECCJ〕
1
ECCJ
Main Activities of ECCJ
Industry
① Energy conservation audits services for factories
② Education & training on energy conservation
③ State examination for energy managers (assigned by the Gov.)
④ Technological development
⑤ Disseminating (conference for successful cases of E-C
activities, excellent energy conserving equipment, etc.)
⑥ ISO14001 seminar for environmental inspectors
Residential
&
Commercial
①
②
③
④
⑤
⑥
⑦
⑧
Energy conservation audits services for buildings
Ranking catalogue for energy efficient appliances
Promotion of Energy labeling system
International energy star program implementation
Smart driving for energy conservation – Stop idling –
Energy conservation “navi”
Establishment of “energy conservation republic”
ESCO research and development
Overall
①
②
③
④
⑤
⑥
Energy conservation campaign & exhibition (ENEX)
Commendation (grand energy conservation prize)
Information & data base
Publicity and publishing
Consulting service through　e-mail
International cooperation
ECCJ
Ⅱ-A-11
2
1. Trends of Energy Consumption
Final Energy Consumption by Sector
index
1965=100
1999/1965
10
（10 kcal）
400,000
Transport
Commercial
Residential
Industrial Sector
Non-Energy
350,000
300,000
23.0%
9.2%
Transport
9.8%
200,000
8.9%
Commercial
11.5%
(572)
217
(479)
105
(257)
11.2%
13.8%
13.3%
7.4%
100,000
(1973)
9.9%
(1965)
50,000
65.6%
65.2%
Industrial Sector
(1980)
57.8%
65
67
(1999)
(1990)
Index
1973=100
1999/1973
49.0%
52.5%
Non-Energy
0
ECCJ
188
Residential
17.6%
150,000
(486)
12.3%
20.8%
16.4%
250,000
213
24.9%
69
71
73
75
77
79
81
83
85
87
89
91
93
95
97
99
F.Y.
3
Why did the manufacturing industry of Japan succeed in the
energy conservation after the Oil Crisis?
• Cost reduction (enforcement of international competitiveness) and self-help
efforts by companies
• Regulation measures by Government（Energy Conservation Law）
• Support and subsidy system by Government（finance, tax, subsidiary aid）
Mutual effect, synergy
Japan became the first class in energy conservation technology by the
rapid progress of energy conservation.
4
ECCJ
Ⅱ-A-12
Trend of Crude Steel Production
of EAF in Japan
5
ECCJ
Activity Incentives for Energy Conservation
1. Cost-down of Energy, Fuel and Electricity
2. Improvement in Productivity
and Rationalization in Production System
3. Fulfillment of Company’s Social Responsibility,
Load Reduction to Global Environment
6
ECCJ
Ⅱ-A-13
Trend of EAF Operation Data
in Japan
7
ECCJ
Tap to Tap Time (min)
Unit Power Consumption of EAF
(kWh/t-good steel)
Example of Trend
in Operation Indexes of EAF
8
ECCJ
Ⅱ-A-14
Example of the Energy Items
in Japan’s Mini Mill
(Products: Steel Bars for Concrete Reinforcement)
13%
10%
4%
52%
9%
Ratio （％）
12%
EAF (Power)
EAF (Chemical Reaction：O2、Oil、Others)
Auxiliaries of Steel Making Shop (Power)
Burner (Ladle+Tundish)
Burner ( Reheating Furnace )
Rolling Mill Shop (Power)
9
ECCJ
Several Energy Saving Technology
in Material Flow Chart
VVVF (4)
Decrease of Input Power (2)
Decrease of Heat Loss (3)
Bag
Filter
Scrap
Preheating
（１）
Decrease of Holding Time (6)
Regenerative
Burner (5)
DHCR ( Direct Hot Charge Rolling )
Continuous Rolling
Type 1
Connecting of Billet
Connecting of Bar
Type 2
10
ECCJ
Ⅱ-A-15
Energy Conservation for
EAF-Mini Mill Factory
1) Energy conservation in EAF shop
1-1) EAF
a) Increasing of input energy
Enrichment of O2
●
According to above countermeasure
Increasing of Oil ( Burner ), Carbon,
Low cost alloys (Al ash, Bundle made
from Can, etc )
■　11
ECCJ
b) Increasing of efficiency in input energy
Power
Common (DC, AC ) :
●　VVVF control of electrode lifting
Foaming slag control in refining stage, etc
AC：　Al-arm, Reactor ( in case of enough
capacity of power station and
high voltage operation), etc
○　○
●
Other
Post combustion (Shaft furnace), Supersonic lance, etc
12
ECCJ
Ⅱ-A-16
c) Decreasing of output energy
Increasing of heat size
●　Decreasing of Tap to Tap time and waiting time
of the time after tapping ( from tapping to the
start of ladle teeming )
● Decreasing of heat loss by slag
Hot recycle of slag, Control of scrap’s dust, etc
● Scrap preheating
●
○
Shaft furnace with decreasing technology
of dioxin
Others
●
13
ECCJ
1-2) Others
Decreasing of power saving in auxiliaries
●　○
VVVF control in the motor of dust collector, etc
2) Energy conservation in Ladle and CC
Regenerative burner of ladle
●　Matching of the productivity between EAF and CC
●
3) Energy conservation in Rolling Mill
Regenerative burner of reheatig furnace
●　DHCR (Direct Hot Charge Rolling ), etc
●　Matching of the productivity between CC and Mill
●
14
ECCJ
Ⅱ-A-17
Conceptual Drawing of
Heat Balance at EAF
15
ECCJ
Example of Heat Balance
in EAF
16
ECCJ
Ⅱ-A-18
3 kwh/t
Influence of Oxygen and Reheat
on Power Consumption
1 Nm3/t
17
ECCJ
Example　oｆ　Heat　Balance
in EAF ( With Al ash )
Output
Input
18
ECCJ
Ⅱ-A-19
Secondary Conductive Arm
19
ECCJ
Relationship between Power Consumption and
the Time from Tapping to the End of Casting
20
ECCJ
Ⅱ-A-20
Hot Recycling of EAF Slag
( Less slag-off after tapping )
21
ECCJ
Several Type
in Recent Scrap Preheating
22
ECCJ
Ⅱ-A-21
ECCJ
23
ECCJ
24
Ⅱ-A-22
Effect of VVVF
25
ECCJ
Regenerative Burner of Ladle
Exhaust Gas
Fuel Gas
920Mcal/h
Effect
Switching Valve
Regenerator
Reduction Ratio of Fuel
Fuel Gas
600Mcal/h
= -51%
[Condition ]
・Ladle Capacity；100 t
・Heating Time；10 hour
Conventional
Regenerative Burner
26
ECCJ
Ⅱ-A-23
Concept Drawing of Regenerative Burner
Flame
Fuel
Fuel Gas
Furnace
Burner
Ceramic
Regenerator
Exhaust Gas
air
Combustion air
ECCJ
Four-wings
Switching valve
27
Regular Industrial Furnace
When waste heat recovery is not implemented, the
exhaust temperature is almost equal to furnace
heating temperature
Exhaust
Burner
Fuel
Blower
28
ECCJ
Ⅱ-A-24
Typical energy conservation is to preheat the combustion air with
the metal heat exchanger.
Recuperator
(metal)
Burner
Fuel
Combustion air
Blower
29
ECCJ
Locate a pair of burners with a built-in ceramic storage heat exchanger.
Combust and exhaust in turn, implement high temperature preheat (heat recovery)
of combustion air.
Fuel switching valve
Burner
Regenerator
(ceramic)
Induced draft fan
Switching valves for air
supply & exhaust
Blower
30
ECCJ
Ⅱ-A-25
High-performance Industrial Furnace & Regular Industrial Furnace
Regenerator
Energy conservation ratio (%)
Recuperator
Furnace temperature
No exhaust heat recovery
20
Preheat air temperature (℃)
31
ECCJ
Energy conservation ratio (%)
Demonstration of energy conservation effect
by High-performance Industrial Furnace
Processing temperature (℃)
furnace (sequent)
ladle
heat treatment furnace
melting furnace
furnace (batch)
heat treatment (sequent)
gas treatment furnace
“Field test program of introduction of high performance industrial furnace” (1998-2000)
32
ECCJ
Ⅱ-A-26
Effect of Heat Pattern Change in Furnace
Temperature
(℃)
Furnace temperature
(heat pattern)
Slab average temperature
Heat pattern Fuel usage
Remarks
1.0
Conventional
0.93
Improved
Time
33
ECCJ
Transition of Total Energy Intensity (crude oil equivalent)
(50t/heat EAF)
Crude oil equivalent energy intensity (L/t)
250
221
200
171
190
150
185
159
154
173
143
Performance of energy conservation for
5 years=10.5%
100
Energy conservation effect by
sequent rolling=4.1% (FY2002)
Performance of energy
conservation for 3
years=8.1%
50
Electricity/total　=　88％
(estimate)
FY
0
1995
1996
1997
1998
1999
2000
2001
2002
34
ECCJ
Ⅱ-A-27
Energy Cost Ratio in Small & Medium Industries (Japan)
Energy cost percentage
Others
Furniture
Electric Machine
General Machine
Transportation Equipment
Publication, printing
Beverage, tobacco,feed
Wood products
Chemical industry
Food
Precision instrument
Garment
Rubber products
Plastic products
Non-ferrous metal
Pulp & paper products
Petroleum & coal products
Iron & steel
Metal products
Textile products
Ceramic products
Energy cost percentage
ECCJ
Fuel cost percentage
( ) indicate sample numbers / Total samples: 733
35
More Information
• You can find information regarding
ECCJ’s activities as well as trends of
energy efficiency and conservation
in Japan through accessing ECCJ’s
Internet Home Page:
• URL:
http://www.eccj.or.jp/index_e.html
36
ECCJ
Ⅱ-A-28
[A]
Information Required for ASEAN Industry Audit
(EAF Steel Industry)
[Ⅰ] Necessary information （Answers to Questionnaire） before audit execution
(We want following information by November 29, 2002)
1. Company general information for factory energy consumption
3. Utility consumption data
3-A Steel-making process (Daily, Monthly and Annual)
3-B Rolling process (Daily, Monthly and Annual)
4. Electric power receiving
5. Boiler
6. Major energy consuming facilities
[Ⅱ] Necessary information during the audit execution
7. Necessary drawings and documents including energy intensity
8. Energy conservation plan
9. Energy conservation items in the past (including results)
10. Energy conservation items undergoing (including expected results)
11 Problem items if you have.
[Ⅲ] Item as requirement for steel maker selection
Two factories in the area of Manila, Philippines
[Ⅳ] Necessary measuring instruments
Please prepare following measuring instruments for audit execution.
Temperature gauge (Non-touch radiance type)
Luxmeter,
Clamp type Ammeter (0~300A or 500A),
Clamp type Wattmeter
Pressure gauge,
Gas analyzer,
Thermo-camera
Ⅱ－A－29
[B] Company Information for Factory Energy Conservation / Questionnaire
[EAF Steel Industry]
Company Name
Replied by
Division
Date
1. General
1
Name of Factory
2
Address
3
President
Factory Manager
Energy Manager
4
Type of Industry
5
Capital
6
Annual Sales Amount
7
Number of Employees
8
Number of Engineers
Mechanical (Heat)
Engineers
9
Organization Chart
10
Brief Company History
11
Meteorological
Ⅱ－A－30
3
2
1
Steel-making process
Name of Production
7) Others
6) Water gas
5) Compressed air
4) Nitrogen
3) Oxygen
2) Steam
1) Electric power
Utility
4) Sheet
3) Shape steel
2) Steel bar
1) Plate
Rolling process
4) CC slab.
3) CC Bloom
2) CC billet
1) Steel ingot
No.
1999
Capacity Operating Volume
Hour
(ton)
Sales
Amount
(ton)
2000
Ⅱ－A－31
Annual Production
Operating Volume
Hour
(ton)
Sales
Amount
(ton)
2001
Annual Production
Operating Volume
Hour
(ton)
Sales
Amount
(ton)
2002
Annual Production
Operating Volume
Hour
(ton)
Sales
Amount
(ton)
Name of Utility
20
19
18 Production (t/y)
17
16 City Water (m3)
15 Well Water (m3)
14 River Water (m3)
13 Steam (t)
11 Nitrogen (m3)
10 Oxygen (m3)
9 Coke (t)
8 Coal (t)
7 Natural Gas (m3)
6 LPG (t)
5 Gasoline (kL)
4 Kerosene (kL)
3 Diesel Oil (kL)
2 Fuel Oil (kL)
1 Electricity (kWh)
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
15
16
Ⅱ－A－32
14
Month / Date
17
18
19
20
21
Steel-making process (Scrap pretreatment, Steel-making, Casting, Material handling and Transportation)
22
23
24
25
26
27
28
29
30
31
Total
Diesel Oil (kL)
Kerosene (kL)
Gasoline (kL)
LPG (t)
Natural Gas (m3)
Coal (t)
Coke (t)
Oxygen (m3)
Nitrogen (m3)
Compressed Air (m3)
Steam (t)
River Water (m3)
Well Water (m3)
City Water (m3)
3
4
5
6
7
8
9
10
11
12
13
14
15
16
20
19
18
Production (t/y)
Fuel Oil (kL)
2
17
Electricity (kWh)
Name of Utility
1
No.
Lower Heat
Value
January
February
March
April
May
Ⅱ－A－33
June
2001
July
August
September
October
November
December
Total
Fuel Oil (kL)
Diesel Oil (kL)
Kerosene (kL)
Gasoline (kL)
LPG (t)
Natural Gas (m3)
Coal (t)
Coke (t)
2
3
4
5
6
7
8
9
20
19
18
17
16 City Water (m3)
15 Well Water (m3)
14 River Water (m3)
13 Steam (t)
11 Nitrogen (m3)
10 Oxygen (m3)
Electricity (kWh)
Name of Utility
1
No.
Lower Heat
Consumption
Value
(kWh,kL,t,m3)
Unit Price
(PHP)
1999
Purchase
Amount
(PHP)
Unit Price
(PHP)
Ⅱ－A－34
(kWh,kL,t,m )
3
Consumption
2000
Purchase
Amount
(PHP)
(kWh,kL,t,m )
3
Consumption
Unit Price
(PHP)
2001
Purchase
Amount
(PHP)
(kWh,kL,t,m )
3
Consumption
Unit Price
(PHP)
2002
Purchase
Amount
(PHP)
Name of Utility
20
19
18 Production (t/y)
17
16 City Water (m3)
15 Well Water (m3)
14 River Water (m3)
13 Steam (t)
11 Nitrogen (m3)
10 Oxygen (m3)
9 Coke (t)
8 Coal (t)
7 Natural Gas (m3)
6 LPG (t)
5 Gasoline (kL)
4 Kerosene (kL)
3 Diesel Oil (kL)
2 Fuel Oil (kL)
1 Electricity (kWh)
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
15
16
Ⅱ－A－35
14
Month / Date
3B-1. Daily Utility Consumption
Rolling process (Heating Furnace, Rolling, Transportation & Shipping)
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Total
Diesel Oil (kL)
Kerosene (kL)
Gasoline (kL)
LPG (t)
Natural Gas (m3)
Coal (t)
Coke (t)
Oxygen (m3)
Nitrogen (m3)
Compressed Air (m3)
Steam (t)
River Water (m3)
Well Water (m3)
City Water (m3)
3
4
5
6
7
8
9
10
11
12
13
14
15
16
20
19
18
Production (t/y)
Fuel Oil (kL)
2
17
Electricity (kWh)
Name of Utility
1
No.
Lower Heat
Value
January
February
March
April
May
June
2001
Ⅱ－A－36
3B-2 Monthly Utility Consumption
July
August
September
October
November
December
Total
Fuel Oil (kL)
Diesel Oil (kL)
Kerosene (kL)
Gasoline (kL)
LPG (t)
Natural Gas (m3)
Coal (t)
Coke (t)
2
3
4
5
6
7
8
9
20
19
18
17
16 City Water (m3)
15 Well Water (m3)
14 River Water (m3)
13 Steam (t)
11 Nitrogen (m3)
10 Oxygen (m3)
Electricity (kWh)
Name of Utility
1
No.
Lower Heat
Consumption
Value
(kWh,kL,t,m3)
Unit Price
(PHP)
1999
Purchase
Amount
(PHP)
Unit Price
(PHP)
Ⅱ－A－37
(kWh,kL,t,m )
3
Consumption
2000
3B-3 Annual Utility Consumption
Purchase
Amount
(PHP)
(kWh,kL,t,m )
3
Consumption
Unit Price
(PHP)
2001
Purchase
Amount
(PHP)
(kWh,kL,t,m )
3
Consumption
Unit Price
(PHP)
2002
Purchase
Amount
(PHP)
Items
No.
Unit
1
Receiving Voltage
kV
2
Maximum Demand
MW
3
MWh
4
PHP
5
Power Factor
6
h/y
7
Average Electricity
MW
8
Maximum Electricity
MW
9
MVA
10
11
1999
2000
2001
2
3
4
MW
5. Boiler
Boiler No.
No.
1
Type
2
Built Year
3
1
Evaporating Volume (t/h)
4
Power Factor
5
Kind of Fuel
Fuel Consumption
6
1999
2000
2001
2002
7
1999
2000
2001
2002
Ⅱ－A－38
2002
Note
Name of Equipment
Rolling process
Utility
Others
Transportation/Material
4.1
handling
4
3.3 Oxygen generator
Water treatment/supply
3.4
station
3.5 Others
3.2 Steam boiler
3.1 Power generation
3
2.6 Others
2.5 Heating furnace
2.4 Cold rolling mill
2.3 Shape steel mill
2.2 Steel bar mill
2.1 Plate mill
2
1.7 Others
1.6 De-dusting equipment
1.5 Continuous casting
1.4 Ingot casting
Ladle/Tundish heater
1.3 2nd refining equipment
Steel-making process
Scrap pretreatment,
1.1
Handling
1.2 Electric furnace
1
No.
Built Year
Kind of
Product
6. Major Energy Consuming Facilities
Kind of
Energy
Nominal
Output of
Product
H/Day
Output
Ⅱ－A－39
D/Y
1999
H/Day
D/Y
2000
Output
H/Day
2001
D/Y
Operating Period and Output
Output
H/Day
D/Y
2002
Output
Items
No.
1
Plant Layout
2
3
Energy Flowchart
4
5
6
7
No.
Kind of Product
a
(Example)
Steel bar
Kind of Energy
Production
Fuel Oil
Electricity
b
Production
c
Production
d
Production
e
Production
f
Production
Unit
1999
2000
2001
2002
t/y
300,000
320,000
320,000
350,000
kL/y
30,000
32,000
31,000
33,000
MWh/y
30,000
32,000
32,000
33,000
Ⅱ－A－40
Ⅱ－A－41
Ⅱ－A－42
1
Uncertainty of energy prospect
2
Less impact of energy cost to the whole cost of the enterprise
3
The increasing energy cost can be covered by rising the price of products
4
Little possibility of energy shortage
5
6
Shortage of engineers
7
8
9
10
Difficulty in obtaining good information such as successful case of energy saving activities
11
Insufficient system of research and development
12
13
14
Low consciousness of employees
15
Lack of personnel who can educate the employees
16
Shortage of measuring equipment
17
No time to analyze energy consumption rate
18
Shortage of information on government's measures
19
Shortage of government's subsidiary measures
20
Others (Please add comments)
Ⅱ－A－43
Philippines
The Philippines is important to world energy markets because it is a growing consumer of
energy, particularly electric power, and a major potential market for foreign energy firms. It
also may become a major producer of natural gas.
BACKGROUND
The new millennium has brought about important changes to the island nation of the Philippines.
With the installation of former Vice-President Gloria Macapagal-Arroyo on January 20, 2001,
the Philippines has undertaken an economic transformation, deregulating its energy sector and
offering new incentives for foreign investment. President Macapagal-Arroyo, a trained
economist, came into power when former President Joseph Estrada was forced from office.
Under Macapagal-Arroyo, key economic indicators, including GDP growth rate, foreign
investment, and inflation have trended favorably. But while a certain degree of success has been
achieved, the country’s fiscal deficit, declining currency, and regional inequality are still
problematic. A major natural gas discovery in the Malampaya field, officially inaugurated in
October of 2001, coupled with increasing military support from the United States could prove to
have a significant impact on the country's future.
ECONOMY
Real Gross Domestic Product (GDP) grew by 4.6 % and Gross National Product (GNP) by 5.2%
in 2002. This increase exceeded both Philippine and international expectations. Much of the
country's renewed economic vibrancy results from improved agricultural yields with a positive
growth of 3.5%, as well as from an increase in domestic consumption brought about by curbed
inflation. Growing confidence in the Macapagal-Arroyo administration, as well as the excitement
surrounding the sizable Malampaya natural gas field also have had a positive effect. Foreign
investment shot up 171%, to $3.4 billion in 2001, as investors gained confidence in Manila's
political climate as well as a newly deregulated and privatized energy sector.
In services, benefits of deregulation in the telecommunication sector grew robustly by 8.9%.
Trade continues to benefit from strong consumer demand, as giant local retailers opened up new
malls in regions outside Metro Manila.
With the economy on healthy footing in 2002, it was forecasted that a sustained GDP growth
would be 4.2 – 5.2 percent and GNP by 4.5 – 5.4 percent. Agriculture is expected to pace 3 – 4%
in 2003 as the government continues to implement El Nino mitigating measures and other
productivity-enhancing measures like distribution of high yielding seeds.
In industry, policies that will boost mining, housing and Small to Medium Enterprises (SME’s)
will support industrial growth in 2003 by 3.4 – 4.4%. Tariff rates for capital goods and other
inputs not locally produced have been reduced to one percent in December 2002; this should
provide buffer to manufacturing sector as they cope with expected oil price increases.
Ⅱ‐ A‐44
Services is expected growing 5.2 – 6.3%, led by telecommunication, trade and private services.
Policies to liberalize air transportation, and measures to boost housing should further keep
services healthy. In banking and finance, the implementation of the Special Purpose Vehicle Act
will pave the way for greater financial activity in 2003 and over the medium term. Continued
macroeconomic stability, especially those relating to fiscal policy, will be important to sustaining
economic growth.
ENERGY
The Philippines' energy sector is relatively dynamic. Major reforms are underway, as are projects
to electrify isolated villages, to reduce the Philippines' dependence on imported oil, and to
change the relative composition of fuel consumption. The Philippine Energy Plan (PEP) for the
period 2003-2012 complements and reinforces the macroeconomic goals of the arroyo
administration to promote balanced economic growth, poverty alleviation and a market based
energy industry. With this macroeconomic goals as basis, Department of energy sets down the
goals for the energy sector which is as follows: 1) Stable and secure energy supply 2) Wider
access to energy supply 3) Fair and reasonable energy prices 4) Clean and efficient energy fuels
and infrastructures 5) Enhanced consumer welfare and protection 6) Technology transfer and
manpower development 7) Job creation from energy activities
OIL
The Philippines began 2001 producing an average of only 1,000 barrels per day (bbl/d) of oil.
Production jumped to 20,000 bbl/d by October, and reached 22,000 bbl/d by year's end. This
dramatic increase was due primarily to the discovery of new deep-sea oil deposits beneath the
natural gas-bearing structures in the Malampaya field. But while new hydrocarbon discoveries
will significantly reduce the Philippines' oil import bill, the country is still a highly dependent net
oil importer. The Philippines consumed 356,000 bbl/d on average in 2001 and produced 8,460
bbl/d, resulting in net oil imports of 347,540 bbl/d.
This dependence on imported oil makes the Philippine economy vulnerable to sudden spikes in
world oil prices. For example, the Philippine oil import bill increased over 70% during the first
eight months of 2000. The Philippine Institute of Petroleum estimates that local oil companies
lost between 3.5-4.0 billion pesos in 2000 due to their inability to adjust petroleum prices to fully
reflect the increased cost of imported oil and foreign exchange depreciation. Oil consumption is
expected to increase by 5.9% annually over the next several years as economic growth increases
demand in most sectors. Oil demand for power generation, however, is expected to decline by
over 50% by 2011, as the government retires aging oil-fired electric power plants and switches to
natural gas and alternative power sources.
Despite small proven oil reserves, the Philippines had enjoyed a recent wave of optimism
amongst domestic and foreign drillers. In October of 2001, exploration underneath the
Malampaya gas field revealed an estimated 85 million barrels of oil condensate. Shell
Philippines Exploration (SPEX) has committed $4.5 billion to the combined oil/natural gas
project, and anticipates potential crude oil production of 35,000-50,000 bbl/d by 2003. In
addition, six new offshore explorations have commenced in the Malampaya basin, led by Nido
Petroleum, Philippines National Oil Company Exploration Corp., Trans-Asia Oil, Unocal Corp.,
Ⅱ‐ A‐45
and Philodril. Also, Trans-Asia has conducted exploratory drilling at the San Isidro well in the
East Visayan Basin. This area may contain as much as 60 million barrels of oil according to
some estimates. The Philippine government estimates reserves of up to 246 million barrels in
northwestern Palawan, and 37.4 million barrels in the Minduro-Cuyo basin. The Philippines
National Oil Company also expects to begin drilling in Lagao, Lambayong province in July of
2002, seeking an estimated 561 million barrels of oil.
Refining & Downstream
The Philippines' downstream oil industry is dominated by three companies: Petron, Pilipinas
Shell (Royal Dutch/Shell's Philippine subsidiary), and Caltex (Philippines). Petron is the
Philippines' largest oil refining and marketing company. The company was a wholly owned
subsidiary of the state-owned Philippine National Oil Company (PNOC) until 1994. Currently,
the Philippine government and Saudi Aramco each own 40% of the company, with the remaining
20% held by portfolio and institutional investors, making it the only publicly listed firm amongst
the three oil majors. Petron's Limay, Bataan refinery has a crude processing capacity of 180,000
bbl/d. Petron's market share at the start of 2002 was 38.3%, a 3.4% gain over 2001. Caltex
(Philippines), a subsidiary of Caltex, the Texaco-Chevron joint venture based in Singapore,
operates a 86,500-bbl/d refinery, two terminals, and more than 1,000 gasoline stations
throughout the Philippines. Its market share is 23.8%, a 2.2% gain over 2001. Pilipinas Shell has
a 153,000-bbl/d refinery, one of the largest foreign investments in the Philippines, and operates
some 1,000 Shell gas stations. Shell's market share is 38%, a 4.7% gain over 2001. Overall,
Philippine refineries run at around 80% of capacity, and there is not a great deal of demand for
new refinery construction.
Oil market deregulation, beginning in 1998, continues to have a significant effect on the industry.
Since deregulation started, 62 new firms, including TotalfinaElf, Flying V, SeaOil (Philippines),
Eastern Petroleum, Trans-Asia Energy and Unioil Petroleum Philippines Inc., have invested $13
billion and built approximately 312 new retail stations. By the end of 2000, the new players had
amassed 10.4% of the local oil market. These new entrants have organized the "New Players
Petroleum Association of the Philippines" (NPPAP), and have been credited with putting
significant downward pressure on retail fuel prices in the country. Currently, the Philippines
enjoys the lowest fuel prices of any non oil-exporting Asian country. However, price swings
associated with deregulation and higher world oil prices have angered many impoverished
Filipinos. Despite public calls for explicit price controls, the government has remained
committed to deregulation . In December 1999, the Supreme Court upheld the constitutionality
of the country's deregulation program. The NPPAP has shown some opposition to the program,
claiming its provisions are insufficient as new players have not been able to capture at least 30%
of the market.
Major downstream developments on the horizon include a $600 million naptha cracker plant to
be built by the Philippine National Oil Company in conjunction with Brunei's Mashor Group and
Malaysia's Petron. The plant, which most likely will be supplied with natural gas from the
Indonesian Dongi field, would enable the Philippines to become an independent producer of
advanced petrochemical products and plastics. The government has also called for a new LNG
receiving terminal to be built in Bataan to receive imported natural gas.
Ⅱ‐ A‐46
In January 2000, the Philippines' Department of Energy announced plans to accelerate the phase
out of leaded gasoline. Leaded gasoline is banned already in Manila.
NATURAL GAS
The Philippines has 3.693 trillion cubic feet (Tcf) of proven natural gas reserves, but no
significant production at the present. While in the past the gas sector has not been developed
extensively, the government has made expanding gas use a priority, particularly for electric
power generation, in an effort to cut oil import expenses. The government expects total domestic
natural gas production to increase annually by 146.4 billion cubic feet (Bcf) to reach 1.5 Tcf by
2011.
The impetus for the dramatic change in the country's natural gas sector is the Malampaya
offshore field. Malampaya is the largest natural gas development project in Philippine history,
and one of the largest-ever foreign investments in the country. Shell Philippines Exploration
(SPEX, operator, with a 45% stake), Texaco (45%), and the PNOC (10%) have come together to
form the Malampaya Deepwater Gas-to-Power Project. The Malampaya field is located in the
South China Sea, off the northern island of Palawan, and contains an estimated 2.6 Tcf of natural
gas. A 312-mile (504-kilometer) pipeline links the field to three power plants in Batangas. The
pipeline is among the longest deep-water pipelines in the world, with half of its length more than
600 feet deep. With completion of the sub-sea pipeline and conversion of the first of three power
stations, (San Rita, operated by British Gas and Philippines 1st Gas Corp.), the Malampaya
project was officially inaugurated on October 16, 2001. Gas from Malampaya eventually will
fire three power plants with a combined 2,700-megawatt (MW) capacity for the next twenty
years and will displace 26 million barrels of fuel oil, according to the government. The
BG/Philippines 1st Gas Corp. partnership has announced that it expects to have a second station,
the San Lorenzo facility, converted for natural gas use by 2003. The government has publicly
considered selling a 10% share in the Malampaya project to the public; however no date has yet
been set for the IPO.
An $80 million joint venture between PNOC, RoyalDutchShell and Brunei's Mashor Group, to
expand the pipeline from Batangas to Metro Manila is being planned. This pipeline would supply
gas to additional power plants as well as the industrial and commercial sectors. PNOC has also
commenced plans with Malaysian Petronas to build a 620-mile (1000-kilometer) line between
the two countries, completing one of the five components in the developing ASEAN power grid.
A number of foreign and domestic firms also are looking at onshore and offshore exploration
projects in the Philippines. A consortium of five companies (PNOC as operator holding 78.75%,
and four Australian companies) is exploring natural gas fields on and around Fuga Island under
Geophysical Survey and Exploration Contract 84. This area has been estimated to contain up to 5
Tcf of natural gas, but this is still unconfirmed. The Fuga 1 exploration well was plugged and
abandoned in June 2000 after producing no hydrocarbons. This area, to the north of Luzon, is
still being considered, however, for a pipeline to Taiwan if a large enough gas find comes into
production. Also, exploration is soon to begin in Southern Cebu by two undisclosed American
firms, as well as in the Sultan Kodurat province by undisclosed European and Middle Eastern
firms. Three natural gas fields were closed down in 2001. Fields in the Tukankuden and the
Cotabato Basin were shut down due to the proximity of rebel soldiers, while another field in
Ⅱ‐ A‐47
Victoria, Tarlac, was closed because the gas discovered was too saturated with water for
commercial production.
The Philippine government is developing a policy framework for the emerging gas industry that
foresees the government's role as that of facilitator while attempting to ensure competition.
Domestic development is to be encouraged, but competition from imported gas also is to be
allowed. Gas supply to wholesale markets will have market-set prices, while prices for captive
markets and small consumers will be regulated.
COAL
Development of new natural gas projects in the Philippines has come largely at the expense of
the country's struggling coal industry. Despite producing 1.49 million short tons in 2000, PNOC
announced that it plans to close its national coal subsidiary. The government also announced that
many of the country's coal-fed power plants are being considered for conversion to natural gas,
including the 600-MW Calaca plant south of Manila. Napocor, the National Power Company,
has followed suit, ordering its coal-fired plants to operate at diminished capacity in order to
allow more capacity for natural gas-fired plants. The country has decided to restructure the use of
its 366 million short tons of estimated coal reserves, which is mostly low-rank lignite, for
processing in smaller "clean coal" plants, for eventual end-use as household fuel, and briqueting.
In the Department of Energy's 2002-2009 energy plan, three new smaller-scale plants are
planned, including a $62 million 50-MW power plant in Isabela, which should be completed by
2005.
The Philippines consumed 9.5 million short tons of coal in 2000, eight million short tons of
which were imported. Indonesia and China are major exporters of coal to the Philippines, and
both have been in negotiations with Manila about increasing their quotas. There has been very
little new exploration for coal in the Philippines since a methane explosion in 1997 killed many
workers and caused public hostility to the industry. New plants have faced increasing opposition
from both agricultural and church groups.
World Trade Organization (WTO) regulations require that the Philippines lift import restrictions
on coal. Since the 1970s, when the National Coal Authority was created, Philippine coal
importers have been required to obtain a government certificate of compliance before importing
coal, allowing the authorities to force importers to buy domestic coal each time they purchased
coal from abroad. President Macapagal Arroyo has committed to honoring the international coal
supply contracts approved by the previous government.
ELECTRICITY
Energy production in the Philippines is concentrated in the electricity sector. Geothermal power
accounts for the country's largest share of indigenous energy production, followed by
hydropower, coal, oil and gas. The Philippine government has made shifting from reliance on
imported oil a major goal, and is pushing the current boom in natural gas-fired electricity
development.
Ⅱ‐ A‐48
The most significant event in the Philippine energy industry in recent years has been the Power
Industry Reform Act of 2001. After 7 years of congressional debate and court cases, the Act
came into force on June 26, 2001. The act has three main objectives: 1) to develop indigenous
resources; 2) to cut the high cost of power in the Philippines; and 3) to encourage foreign
investment. Passage of the Act sets into motion the deregulation of the power industry and the
breakup and eventual privatization of state-owned enterprises. Actual sale of state assets and
implementation of the program is not likely to take place until late 2002 or 2003.
The legislation requires the state-owned utility National Power Corporation (Napocor) to breakup its vertically integrated assets into smaller sub-sectors such as generation, transmission,
distribution and supply in order to prepare for eventual privatization. The result will be a system
in which privatized generators would sell directly to private distribution companies. Working
with consultants from Hunton and Williams, Napocor has designated two new subsidiary
companies designed solely for eventual privatization. These two firms, Transco and Psalmcorp,
will entail the state's high voltage transmission lines and infrastructure, and power plants,
respectively. The government also will sell off its share of Meralco, a smaller company that
serves Manila and the immediate surrounding area by buying power from various Independent
Power Producers (IPPs).
Napocor will need to transfer its existing power purchase obligations to private distributors, and
also to renegotiate high-priced contracts. The cost savings lie in the fact that private distributors
will likely be unwilling to enter into agreements that are above market rates. There are other
financial incentives for the government as well. Napocor's huge debt and $9 billion in power
purchase agreements are unsustainable, and the government must already contribute $300
million per year to keep Napocor afloat. Finally, the government needs more foreign investment
in the sector as demand is projected to outpace supply by around 2005 at current rates of
investment.
In order to make the sale of Napocor more attractive to investors, the government has absorbed a
significant amount of Napocor's $6.7 billion debt. In addition, the $9 billion in power purchase
agreements with IPPs also will be sold off. The transmission system will be transferred to an
independent company, Transco, which is scheduled for privatization by mid-2002. Privatization
of Transco, however, is contingent upon congressional approval for the rules governing a new
wholesale spot market as well as a reduced transmission tariff, or "wheeling charge". According
to deregulation laws, no one potential buyer will be allowed to own more than 30% of the
Philippines' generating assets.
Electricity demand in the Philippines is expected to grow by around 9% per year through 2009,
necessitating as much as 10,000 megawatts (MW) of new installed electric capacity. Current
contracts will provide about half of that amount, with the remainder expected to be filled once
the market deregulates. Medium-term increases in power demand are to be satisfied largely by
the three gas-fired plants (Ilijan, Santa Rita, and Sucat) that will be linked to the Malampaya gas
field, plus the coal-fired 470-MW Quezon Power Project that was inaugurated in June 2000. The
Korea Electric Power Corporation (KEPCO) plans to complete the 1,200-MW Ilijan plant in
2002. KEPCO will run the plant under a build-operate-transfer scheme for 20 years, after which
ownership will revert to Napocor. Minority stakeholders in the plant are Southern Energy of the
Ⅱ‐ A‐49
United States (20%) plus Mitsubishi (21%) and Kyushu Power (8%) of Japan. First Gas Power
completed its 1,020-MW plant at Santa Rita in August 2000, with the plant running on
condensate until gas becomes available. First Gas Power's subsidiary FGP Corporation is
building a 500-MW power plant nearby the First Gas facility in Santa Rita, in Sucat. Operators
are expected to begin by 2006.
Other power facilities planned, under construction, or recently completed include four small
hydroelectric plants with a total capacity of 650 MW in the Mindanao region and three small
diesel-fired plants in Oriental Mindoro operated by Southern Energy. The CE Casecnan Water
and Energy Company (a subsidiary of California Energy International) is constructing a
multipurpose irrigation and 150-MW hydroelectric facility in Luzon.
Southern Energy is the Philippines' largest IPP, operating five power plants in the country.
Southern's new coal-fired Sual plant began commercial operation in late 1999. The 1,218-MW
plant is located about 130 miles north of Manila, and reportedly is the nation's largest and
lowest-cost electricity producer. Napocor is the sole purchaser of Sual electricity.
Several power-generating facilities also are under extensive rehabilitation. The 100-MW Binga
hydroelectric plant in Itogon, Benguet has been under renovation since 1993 following damage
from a 1990 earthquake. Due to political factors, this renovation has so far been unsuccessful,
with the dam in worse shape now than in 1993. A larger project is the $470 million contract with
Argentine firm IMPSA (Industrias Metalurgicas Pescarmona Sociedad Anonima ) to rehabilitate
and operate the 750-MW Caliray-Botocan-Kalayaan (CBK) power complex in Laguna, south of
Manila. The CBK complex is the grid regulator in Luzon, and as such is able to transmit power
to other plants on the grid in the event of breakdowns. IMPSA, in conjunction with new partner
Edison Mission Energy of the United State, was able to get a performance undertaking guarantee
despite Napocor's and some government officials' objections, facilitating long-delayed financing
of the project.
In March 2000, Texas-based El Paso Energy International and Hawaiian Electric Industries
formed a 50-50 joint venture to own and operate five power plants now owned by East Asia
Power Resources Corporation, a public Philippine company. The total generation capacity of the
venture's holdings will be 390 MW. The oil-fired plants are located in Manila and Cebu.
Volatility in electric power prices has angered many Filipinos, who blame the Power Industry
Reform Act of 2001. The Act calls for an Energy Regulatory Board, which reviews and approves
applications by the National Power Corporation for price increases. Controversy over pricing
still exists, however, as the Association of Philippine Electric Cooperatives demonstrated in May
of 2001 with an organized blackout to protest a 30 centavo rate increase instigated by Napocor.
The Philippines, due to its geography, has problems linking all of its islands together into one
grid and ensuring availability of electric power to the remaining 9,708 villages without electricity.
The government has set a target date of 2004 for electrification of all these villages through the
14-billion peso "O-Ilaw" program, and also is taking steps to link together the country's three
major power grids (Luzon, Visayas, and Mindanao). As of March, 2002, the government claims
Ⅱ‐ A‐50
the project is 85.6% complete. Where it is not economical to link small islands' grids into the
national grid, separate local systems are being established around small generating plants.
Renewables
The Philippines is the world's second largest producer of geothermal power, with an available
capacity of 1,931 MW, according to the Philippine government. The government would like to
bring on another 990 MW, bringing capacity to 2,921MW, and exceeding the U.S. capacity of
2,775 MW. Geothermal power currently makes up around 16% of the Philippines' installed
generation capacity, most of which has been developed by the PNOC - Energy Development
Corporation (PNOC-EDC). Privatization of PNOC-EDC is expected in the near future, with
several firms already expressing interest. PNOC-EDC bought Napocor's geothermal assets in
March 2001. Kyushu Electric company is in a joint venture with PNOC-EDC to develop a 40MW geothermal plant in Sorsogon, Albay province, and Marubeni of Japan has expressed its
intent to build the 100-MW Cabalian geothermal plant in Leyte. California Energy's Philippine
unit is working with PNOC to develop three new geothermal power plants in Leyte, producing a
total of 540-MW of electricity. Plans are underway to develop nine new facilities in Luzon,
ranging from 20 MW to120 MW that will eventually bring a total of 440 MW of geothermal
energy to the grid. By 2004, the new 40-MW Mambucal and 40-MW Rangas power stations in
Dauan, Negros Oriental are expected to come online.
Besides geothermal, the Philippines also is exploring the use of other renewables for electricity
generation, particularly in the country's unelectrified villages. In December 2000, WorldWater
Corp. signed an agreement with Cebu Electric Cooperative to provide 1,200 homes with solar
electrification. In March 2001, the Philippine and Spanish governments, in conjunction with BP,
agreed to a $48 million contract to bring solar power to 150 villages. BP and the government of
Australia also have partnered with the Philippines to supply solar power to rural villages,
bringing 1,145 solar-powered systems to 52 new municipalities. New solar-powered facilities
were also inaugurated for villages on Samal Island on December 7, 2001.
The Philippines appears to have a strong potential for wind farming. The United States
Department of Energy wind mapping survey estimates that wind resources in the Philippines
have a power generation potential of as much as 70,000 MW, seven times the country's current
power demand. Garrad Hassan Ltd. of the United Kingdom has expressed interest in a $220
million wind power pilot project. Another wind power project is the 40-MW, PNOC-EDC
Northern Luzon project in Ilocos Norte, scheduled to begin operations in 2002. PNOC and the
Japan Bank of International Cooperation also plan to build a $64.7 million, 40-MW wind farm in
Burgos. The Burgos facility will be the country's first commercial wind farm, and may possibly
be connected by a spur line to the Luzon Island power grid. This project is the first in a series of
three to add 120 MW of wind power to the NAPCOR grid. A biomass waste-to-energy plant is
planned for Negros Occidental that would use 450 tons of municipal waste and bagasse per hour.
Nuclear
In March 2000, the government announced that it would build a 600-MW nuclear power plant
similar to the Bataan plant by 2020. However, the Bataan plant was declared inoperable due to
its location on an earthquake fault, and the government continues to pay $250,000 per day to
service the debt on the inoperable plant. The Triga Research Reactor, which dates from 1963, is
Ⅱ‐ A‐51
to be replaced with a new 20-MW research reactor. However, though as it may say, energy from
Nuclear sources is very unpopular proposition among Filipinos.
Ⅱ‐ A‐52
Regardless of the whole or a part of the report, the report
shall not be disclosed without the prior consent of the
International
Cooperation
Center,
New
Energy
and
Industrial Technology Development Organization (NEDO)
Phone 03（3987）9466/9358
Fax
03（3987）5103

2002 or 2003

Transcription

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